Tesla is cutting prices for the fifth time this year

Tesla has cut prices for the fifth time this year.
Yuan Bing/VCG via Getty Images

Teslas are getting cheaper. Again.

For the fifth time since January, the automaker has lowered prices on select models, as it looks to entice fence-sitters and fend off competition from a growing number of automakers.

Tesla has lowered the price of the Model S and Model X by $5,000 each, bringing the cost to $84,990 and $94,990, respectively. The Model 3 sedan, meanwhile, as well as the Model Y SUV saw reductions of $1,000 and $2,000, bringing them to base prices of $41,990 and $49,990.

The cuts come roughly a month after the company cut the prices of its Model S luxury sedan and its Model X SUV. Tesla CEO Elon Musk, at an investor presentation earlier this year, said the price reductions have had a “big effect on demand, very big.”

Tesla is reducing retail prices as it says stricter U.S. standards will reduce the $7,500 tax credit that’s currently available for the Model 3. At the same time, several automakers are becoming more price competitive as consumer interest in electronic vehicles continues to grow. Ford, for instance, has lowered the price of the Mustang Mach-E by an average of $4,500 per car.

Those price cuts could stimulate consumer interest, but they’ll also likely cut into profits for Tesla (and other automakers), which has some Tesla shareholders grumbling about the move.

Existing customers aren’t real happy either, as those who bought models just days before previous Tesla price cuts were announced say they were not offered any sort of compensation or make-good.

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