Tesla slashes Prices of Model S, Model X in US for second time this year

Washington: Tesla Inc. slashed prices of its Model S sedan and Model X SUV in the US late Sunday night by $5,000 and $10,000 respectively as the company seeks to goose demand in the final month of the quarter.

The Model S all-wheel drive is now $89,990, down 5.2 per cent from $94,990, according to the company's website. The Model S Plaid is now $109,990, down 4.3 per cent from $114,990.

The Model X all-wheel drive is now $99,990, down 9.1 per cent from $109,990. The Model X Plaid is now $109,990, down 8.3 per cent from $119,990.

Tesla sells its cars direct to consumers and often tweaks its pricing. The latest moves come even though Tesla drastically cut prices in January in a broad bid to boost sales.

At the company's March 1 investor day, held at Tesla's factory in Austin, Texas, Chief Executive Officer Elon Musk and other leaders emphasized manufacturing efficiency and cost cutting.

"The desire for people to own a Tesla is extremely high," said Musk. "The limiting factor is their ability to pay for a Tesla."