Tesla has issued another round of price cuts on Sunday evening, reducing the price of both the Model S and Model X in the US. However only the Model X saw a price reduction in Canada. The interesting part of the price reductions is that the Plaid variants of the Model S and Model X are now priced at the same amount, bucking the historic trend of the two flagship vehicles having at times a significant price gap.
There have been no price changes to the Model 3 or Model Y in either country.
Model X Prices in Canada
In January Tesla reduced prices across their entire lineup, dropping the Dual Motor All-Wheel Drive variant 11% and the Plaid variant 18%. Both variants saw a further $7,000 reduction on Sunday night bringing, with the Dual Motor All-Wheel Drive now starting at $135,990 and the Plaid dropping to $149,990, the same price as the Model S Plaid after the January price cuts.
- Dual Motor All-Wheel Drive: $135,990 (-$7,000, -4.9%)
- Plaid: $149,990 (-$7,000, -4.5%)
Model S/X Prices in the US
In the US the price reductions impacted the Model S and Model X. Both variants of the Model S dropped by $5,000 and both variants of the Model X dropped by $10,000.
With these price reductions the Model S Plaid is now $26,000 cheaper and the Model X Plaid $29,000 cheaper than they were at the start of 2023.
- Model S: $89,990 (-$5,000, -5.2%)
- Model S Plaid: $109,990 (-$5,000, -4.3%)
- Model X: $99,990 (-$10,000, -9.0%)
- Model X Plaid: $109,990 (-$10,000, -8.3%)
Tesla did not announce the reason for the price cuts, but they come at an interesting time as the automaker has been expected to announce an update to both vehicles’ hardware. Over the last few weeks we have seen evidence that Tesla is already building Model S/X cars with the latest Hardware 4.0 (HW4) computer that powers Autopilot and Full Self-Driving (FSD). We were expecting a possible announcement of the new hardware at Investor Day last week, but that didn’t end up happening, and there has still been no word from Tesla as to when customers can expect to take delivery with HW4 installed.
In fact they haven’t even officially announced the specs of HW4, although there has been a teardown of an early unit revealing some additional camera inputs and more. The only comments related to its performance came from Elon Musk, who said the current HW3 will still be able to accomplish FSD, but that HW4 will be able to perform those functions at a higher safety level than its predecessor. Musk explained the difference between the two computers as HW3 being 200% or 300% safer than a human, whereas HW4 might be 500% to 600% safer.
