Markets

Tesla Again Cutting Price of Model S, Musk Says

For the second time in a matter of only days, Tesla (NASDAQ: TSLA) is reducing the price of its Model S sedan. That's according to the company's colorful CEO Elon Musk, who announced this in a Wednesday afternoon tweet, reading in its entirety:

The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight.

The contest Musk appears to be referring to is with Lucid Motors, a privately held rival whose CEO and CTO is one-time Tesla executive Peter Rawlinson. Earlier on Wednesday, Lucid announced that the starting price of its upcoming Lucid Air sedan would be $69,900, once a federal tax rebate kicks in.

A Tesla Model S on the road.

Image source: Tesla

In what's likely not a coincidence, Rawlinson's position at Tesla was vice president and chief engineer for Model S, according to his LinkedIn page.

Musk's pronouncement marks the second time this week the sticker price of the Model S has been lowered. It was first cut from $74,990 to $71,990.

Lucid Air has not yet reacted to or made a formal statement about Musk's pronouncement.

The Model S is one of the better-established electric vehicles (EVs) on the market. It first rolled out of Tesla factories in 2012. Yet its positioning as a premium car limits its potential customer base -- in Q3, for example, the company delivered 15,200 Model S and its similarly premium Model X SUV. By comparison, the more budget-priced Model 3 sedan and the Model Y SUV combined for 124,100 deliveries.

Few investors are happy with price cuts. On Thursday, they seemed to indicate their displeasure with Tesla's latest one[s], bidding the stock down by 2.7% on the day.

10 stocks we like better than Tesla
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of September 24, 2020

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TSLA

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More