Elon Musk Prices Model S at $69,420 After Playful Tweet
The Tesla Model S is preparing for a price reduction.
Tesla’s CEO, Elon Musk, recently announced via Twitter that the Model S sedan will shortly be offered at a price of $69,420. This price point was deliberately chosen and isn’t a random occurrence. The adjustment is likely a direct response to Lucid Motors offering a lower price on its vehicles earlier in the day.
As evidenced by the aforementioned Twitter post, Elon Musk stated that “The gauntlet has been thrown down.”
Lucid Motors revealed earlier today that the base model of its sedan would be priced at $77,400, with an additional $7,500 U.S. tax credit available. Considering the majority of customers are eligible for this credit, the final cost is effectively reduced to $69,900. The connection to Tesla’s subsequent announcement is apparent.
This new starting price of $69,420 represents the second price decrease for the Model S this week. Roadshow by CNET previously reported that the manufacturer had quietly lowered the Model S price by $3,000 earlier this week, potentially as a preemptive move to challenge Lucid before today’s announcement. Tesla also reduced the starting price of the Model 3 by $2,000 earlier in the year.
Musk also used Twitter to share updates regarding Tesla’s latest model, the Model Y. He indicated that the Model Y, a compact crossover vehicle, will soon be offered with a configuration capable of seating seven passengers. Details regarding the specific seating layout were not provided.
The Lucid Air is emerging as a significant competitor to Tesla’s Model S. The Air boasts a comparable range to the Model 3—even the recently priced entry-level version matches the Model S’s 400+ mile range. Furthermore, the Air is lighter, quicker, and represents a more recent design. The Model S has largely maintained its original design since its debut in 2012.
In a recent conversation with TechCrunch, Lucid CEO Peter Rawlinson informed editor Darrell Etherington that the Air would be available at a price point “surprisingly lower than $80,000.” While today’s pricing isn’t necessarily surprising, it positions the Lucid Air within the same price bracket as well-appointed mid-size European sports cars and, crucially, the Tesla Model S.