(RTTNews) - Electric car maker Tesla Inc. has cut the price of its Model S Long Range sedan. Chief Executive Elon Musk tweeted, "The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight!"
Further, in a reply to a tweet, Musk confirmed that Tesla is starting production on Model Y seven seater next month, with plans for initial deliveries in early December.
This is the second price cut for Model S in a week. On Tuesday, the company announced a 4 percent cut to $71,990. Tesla also reduced the price of its Model S in China by 3 percent. Earlier, the company had cut the starting price of its Model 3 sedan in China.
The latest price cuts could be in view of competition in the electric vehicle market mainly from electric vehicle startup Lucid Motors. With the benefit of a $7,500 U.S. government electric vehicle tax credit, Lucid sells its luxury sedan Air model at a starting price of $69,900.
Tesla, which introduced Model S in 2012, had reduced prices of its electric cars in North America as well as in China many times recently following a decline in auto demand during the coronavirus-induced lockdowns.
In June, Tesla had cut the price of the Model S Long Range Plus by $5,000, while in July, it reduced price of its Model Y crossover by $3,000. Tesla unveiled Model Y in March 2019, and started deliveries in mid March, 2020.
In May, the luxury electric car maker cut the prices for its flagship Model S sedan and the Model X sport utility vehicle by $5,000 each, and the lowest-priced Model 3 sedan by $2,000.
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