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Tesla Model S Gets Second Price Cut of the Week to $69,420

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【Summary】In what turned out to be a truly bizarre week for Tesla’s flagship sedan, the Model S received two dramatic price cuts to become far more affordable.

Original Vineeth Joel Patel    Oct 18, 2020 6:30 AM PT
Tesla Model S Gets Second Price Cut of the Week to $69,420

Tesla, despite selling more and more vehicles every quarter, is not a traditional automaker. It doesn't have a traditional network of dealerships, it doesn't service vehicles in a traditional way, and it doesn't manufacture traditional cars. That gives the brand a lot of wiggle room to do untraditional things – like make price cuts whenever it deems necessary. While the majority of other automakers would usually wait for a new model year to announce changes, especially ones that have to deal with pricing, Tesla does things when it wants.

Model S Gets Cheaper

That's why the Model S got two drastic price cuts this week. At the beginning of last week, Tesla announced that the Model S would get a $3,000 price cut. With the decrease, pricing for the Model S Long Range started at $73,190 (including destination) compared to $76,190. Seeing a popular, cutting-edge vehicle go down by $3,000 for no rhyme or reason is a huge deal. Pricing for the Performance trim also went down by $3,000 to $93,190. In the Model S lineup, the Plaid trim was the only one that didn't go down in pricing.

The price cut matched what Tesla did with its other electric vehicles earlier this year. In July, the Model Y went down by $3,000. Earlier this May, the Model 3 saw a $2,000 price cut, the Model X went down by $5,000, and the Model 3 saw a $2,000 price decrease. So, while it wasn't normal, it kind of was at the same time.

Then, a few days later, Tesla CEO Elon Musk took to Twitter to reveal that the Model S would be getting another price cut. "The gauntlet has been thrown down!" reads Musk's tweet. "The prophecy will be fulfilled. Model S price changes to $69,420 tonight!"

Why The Price Cut Now?

Musk, as many Tesla fans know, is a huge fan of those numbers. He was following 69 people on Twitter for a long time, smoked weed on the Joe Rogan podcast, and introduced Tesla Short Shorts for $69.42. It's childish and all about appealing to meme lovers on the internet, but this is exactly why Tesla is so much more than a traditional automaker.

With the latest price cut, the Model S now starts at $70,620 including destination, which is an additional decrease of $2,570. In just one week, pricing for the Model S went down by $5,570. That, for an automaker, is unheard of.

There are a few rational reasons as to why Tesla decided to decrease the pricing of its flagship sedan. Third-quarter results are expected to come out on October 21 and the fourth quarter will start after that. With the COVID-19 pandemic throwing Tesla a wrench when it comes to manufacturing, the automaker is probably looking to reach its goal of selling 500,000 EVs in 2020. To reach that mark, Tesla's going to have to move 182,000 EVs. More affordable cars will help it do that.

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