Tesla continues to reduce the price of their electric car Model S manufactured since 2012, following the price reduction by the competitor Lucid and increased competition from other manufacturers. Tesla announced earlier than originally expected, the timing of production and deliveries 7 seater Model Y.
On Wednesday, the CEO of Tesla (TSLA) Elon Musk has reduced the price of the flagship sedan of the company’s Model S the second time in a week.
In the beginning of the week the price of the Model S in the United States was reduced from $74 990 up to $990 71, on Wednesday, the price tag fell by 3.7% to $69 420.
Musk wrote on Twitter: “the Gauntlet is thrown down! The prophecy will come true. The price of the Model S tonight will change to $69 420!”
Analysts attributed the decline in the price of the Model S desire for competition, noting that a few hours earlier on Wednesday, the electric car Lucid Motors, headed by former head of Tesla Peter Rawlinson, reduced the price of the base version of its future sedan Lucid Air and $69 900 (price after Federal tax benefits in the amount of U.S. $7 500).
Lucid expects that the base model of the sedan will provide a range of 653 miles on a single charge. The Model S has almost the same power reserve of 647 km.
In addition to Lucid, there are others such as American: General Motors (GM), Ford (F), and the European Volkswagen, Daimler – competitors, ready to take away market share from Tesla.
Competition in China is also growing – on Wednesday, shares of Nio (NIO) jumped 22% after a rating upgrade from JPMorgan. Earlier this month, Tesla has reduced the price of its most popular electric car Model 3 in China.
According to analysts Credit Suisse, the Model S is only about 5% of the total sales of the Tesla.
At the “Bottom” battery in the past month, Tesla also announced a goal to create an electric car at a price for $25 thousand by 2023.
Tesla shares fell 2.7% on Thursday (at the time of writing) despite the fact that Baird analyst Ben Kallo increased his target price by 25%: from $360 to $450 per share, but maintained a rating of “neutral.” The analyst cited the potential growth in gross profit and income Tesla, expressing the hope that the company can change priorities to focus on growth, not cost control.
On Wednesday, Elon Musk wrote on Twitter that the start of production 7-seater Model Y, which was announced last year, will begin in November, with first deliveries in early December.
This is an earlier date than originally stated, but on the website of Tesla the period of supply of the electric vehicle Model Y is still listed as “will be available in 2021”.
The company has high hopes for sales of the Model Y, which is the small family SUV.