Tesla Model S

Elon Musk cuts the price of Tesla Model S twice in a week

Tesla CEO Elon Musk slashed the price of the company’s flagship sedan Model S for the second time within one week on Wednesday. He announced the discount in a tweet: “The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight!”

From Twitter

Musk, in a statement about the company, said young people often show a love of humor and used the numbers “69” and “420” as sexual acts and recreational cannabis use. Prices for the low-end version of the Model S, “Long Range Plus”, were updated on Wednesday night on Tesla’s website at $69,420.

The tweet was followed by news about the prices of Lucid Motors, an electric car driven by Peter Rawlinson, the former CEO of Tesla. Lucid said Wednesday morning that the basic or “elemental” version of the Lucid Air electric sedan will cost $77,400, or $69,900, after tax of $7,500.

Lucid predicted that the basic model of the sedan would estimate a distance of 406 miles for a single charge through the EPA. The Tesla Model S, which the company has been offering to customers since 2012, has an EPA rating of 402 miles per charge.

The buying price of the Model S fell to $74,990 in the US earlier this week from $74,990. The latest Model S price discount represents another 3.5% discount for potential US customers.

Credit Suisse analyst Dan Levy wrote in a note on Wednesday that “A full quarter of lower price post price down in late May,” was negative for Tesla in the short term.

Prices have also fallen in China recently.

According to the China Passenger Automobile Association, Tesla’s shipments in China reached 11,329 units in September, slightly lower than in August, but the figure that made Tesla one of the top three manufacturers. “New energy vehicles,” according to sales there.

GM, in a joint venture with SAIC in China, surpassed the Tesla Model 3 in China in August with the $5,000 electric minibus Hongguang MINI EV.

Tesla is currently preparing to sell between 477,750 and 514,500 electric vehicles worldwide in 2020, according to the latest issue guidance at the company’s annual shareholders’ meeting. It targeted at least half a million car deliveries.

Tesla said it shipped about 318,350 cars in the first three quarters of 2020. To achieve its original goal, Tesla had to deliver more than 180,000 vehicles in the fourth quarter. To reach its lowest target, the company needs to deliver a record of 159,400 vehicles in the fourth quarter, which was affected by the Covid-19 epidemic.

Credit Suisse Levy predicts that the company will be “in a difficult position” to reach 500,000 supplies by 2020, but concludes: “We expect this to be investigated because investors’ long-term the growth rate remains the same.”

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