Tesla slashes EV prices by as much as six percent in North America

Bottom line: Some automakers are offering deferred payments and zero percent financing on new purchases to lure buyers in. But with many having filed for unemployment in recent weeks due to job losses, a new vehicle purchase is likely the last thing on their mind, even when factoring in attractive incentives.

Tesla has slashed the price of its electric vehicles by as much as six percent in North America due to waning demand caused by the ongoing Covid-19 pandemic.

The Tesla Model S sedan now starts at $74,990, a decrease of $5,000 from the previous $79,990 asking price. The Model X SUV, meanwhile, is down to $79,990 from $84,990, and the entry-level Model 3 sedan now starts at $37,990, down from $39,990. The new Model Y is the only vehicle in the company’s lineup that didn’t get a price cut.

According to Reuters, the automaker also trimmed prices on the Model X and Model S in China, by roughly four percent. Locally-made Model 3 vehicles will not see a price cut, Tesla China said in a recent Weibo post.

Reuters cites data from J.D. Power suggesting retail auto sales in the US may have fallen by as much as half in April compared to the same period a year earlier. Figures are expected to improve this month, however, due to pent-up demand, the easing of stay-at-home orders and incentives offered by manufacturers.

Image credit: Ivan Marc, Tudoran Andrei