Tesla hasn’t made any memorable strikes to regulate pricing to satisfy or beat rival autos from mainstream manufacturers.
However it appears that evidently crosstown rival Lucid Motors is completely different.
Tesla Mannequin S Plaid
Tesla CEO Elon Musk introduced Wednesday that the “gauntlet has been thrown down”—showing to discuss with Lucid’s pricing of the base Air electric sedan, earlier within the morning—and famous: “Mannequin S worth adjustments to $69,420 tonight!”
The gauntlet has been thrown down!
The prophecy shall be fulfilled.
Mannequin S worth adjustments to $69,420 tonight!
— Elon Musk (@elonmusk) October 14, 2020
Musk didn’t say whether or not the transfer was a response to Lucid’s pricing announcement right now. But when not, it’s fairly a coincidence—particularly contemplating that Tesla simply lower Mannequin S costs by $3,000 earlier this week.
Relative to the at present listed worth of $71,990, the lower represents one other $2,570 low cost for the Mannequin S—a complete of greater than $5,500 off the Mannequin S worth this week versus final week.
Lucid does have one order-sheet benefit with the Air, to this point: its anticipated 406-mile EPA vary is 4 miles above what the Model S Long Range currently achieves for that worth. Nonetheless deliveries of that model of the Air stay a yr or extra away.
Tesla’s new worth for the Mannequin S represents a considerably decrease up-front value than the Lucid Air, for which Lucid’s $69,900 worth is determined by its eligibility for the complete $7,500 EV tax credit score quantity—and consumers eligibility to assert that quantity. It’s a good level to underscore that not everybody will qualify for the EV tax credit score; you want that a lot tax legal responsibility to be able to declare it.
Neither worth contains the necessary vacation spot cost, which for Tesla is $1,200. We didn’t embrace it on this piece for comparability functions since Lucid hasn’t but set that quantity.
Tesla entered a sundown interval, with lowered quantities for the federal EV tax credit score after promoting a complete of 200,000 qualifying autos within the U.S. After December 31, 2019, Tesla consumers haven’t been eligible for the credit score.
As a result of little or no of Musk’s play with numbers is coincidental, we’ll additionally spotlight that the lowered worth of $69,420 for the Mannequin S additionally occurs to be Lucid’s marketed worth of $69,900 minus its horsepower ranking, 480.
Lucid Air base mannequin
If Musk is rattled by how shut the Air has gotten to Mannequin S territory, though the Air is a brand new design and the Mannequin S is basically an eight-year-old one, it’s seemingly not simply the automobile. Lucid features a full home of Tesla expats, together with CEO Peter Rawlinson, who oversaw growth work on the unique Mannequin S, and VP of producing Peter Hochholdinger, who ramped up Mannequin 3 manufacturing.
In the identical thread, Musk confirmed that manufacturing of the seven-seat (three-row) model of the Tesla Mannequin Y is beginning subsequent month, with first deliveries in early December. That places it forward of earlier estimates from the corporate—arriving about the identical time as first deliveries of the Volkswagen ID.4 and Ford Mustang Mach-E, which to this point, Tesla has proven no real interest in explicitly price-matching.
However do not forget that potential California rivalry? Think about it on.