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Tesla Cuts Car Prices In North America, China

tesla may27 lt

Tesla has cut prices of its electric cars in North America following a decline in auto demand during the coronavirus-induced lockdowns. The company is also reducing the prices for its vehicles in China.

The luxury electric car maker has reduced the prices for its flagship Model S sedan and the Model X sport utility vehicle by $5,000 each, while the lowest-priced Model 3 sedan is now cheaper by $2,000.

The Model S will now be priced from $74,990, down from $79,990 earlier. The Model X now starts at $79,990, compared to $84,990 previously. The company's cheapest Model 3 sedan will be priced at $37,990, instead of $39,990 earlier.

Tesla's Model Y is the only car in the automaker's line up that has not been impacted by the price changes.

Tesla said it will also cut prices for its cars in China, which the company usually makes after the price adjustments in the U.S.

Tesla China said it will cut prices for the Model S and Model X cars it imports, but will not change the prices for locally-made Model 3 cars. Tesla's Shanghai factory makes the Model 3 sedans.

On May 11, Tesla CEO Elon Musk confirmed that the luxury electric car maker has restarted manufacturing cars at its Fremont, California plant. The company restarted production despite an ongoing battle with local officials about whether it should remain closed during the COVID-19 pandemic.

The Detroit auto giants - General Motors, Ford and Fiat Chrysler - too have restarted their plants in the U.S., after shutting down them in late March due to the pandemic.

The automakers have implemented new safety measures to help keep the coronavirus from spreading, including touchless body temperature scanning, mandatory face mask use, staggered shifts, washing of hands, and a device that buzzes if workers get too close to each other.

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