Teslas are getting cheaper again — but this time it’s only the top models that are affected. The company recently reduced the prices of its Model S and Model X cars in the U.S. by $5,000 each. The Dual Motor All-Wheel Drive Model S now costs $89,990, while the Tri Motor, Plaid variant of the Model S costs $109,990. Similarly, Tesla’s Dual Motor All-Wheel Drive Model X now costs $99,990, and the Plaid version will set you back $109,990. While the price reduction may not seem like a lot given the total price of these cars, it’s worth remembering that all Tesla models got a lot cheaper in January. In total, the AWD Model S now costs $15,000 less than it did just two months ago; the AWD Model X costs $21,000 less. The prices of Tesla’s entry-level cars, the Tesla Model 3 and Model Y, haven’t changed in March.
During the company’s Investor Day on March 1, Tesla’s China chief Tom Zhu said that the company is doing everything it can to cut costs “and pass down that value to our customers,” while CEO Elon Musk reiterated that “even small changes in the price have a big effect on demand.” Musk also said Tesla plans to produce 20 million vehicles per year by 2030; it currently produces about 1.31 million cars yearly.