Tesla Inc. has stepped up its U.S. sales incentives to move new inventory of its high-end Model S sedan and Model X crossover, with discounts reaching $7,500 plus free use of its Supercharging network for three years, according to the company’s website.
The EV maker typically rolls out incentives in the last month of each quarter. Tesla also slashed sticker prices in January across its four-vehicle lineup amid slowing sales. CEO Elon Musk has said he’s willing to trade profit for volume with a global target of 50 percent sales growth.
In the San Francisco Bay Area, where Tesla’s Fremont factory is located, a base Model S with all-wheel drive was available on Sunday for $84,380 with shipping, compared with the full price of $91,880 with shipping. Deliveries must take place by June 30, Tesla said.
Websites tracking Tesla’s constantly changing prices, such as InsideEVs, noted that inventory of the Model S and Model X already had incentives of $5,000 from a few weeks ago before they were raised by $2,500 over the weekend. In April, Tesla added free Supercharging to the Model S and Model X.
A base Model X on the Tesla website was available for $92,880 with shipping on Sunday, for a discount of $7,500. Before January’s deep price cuts, the base price of the Model X last year was $122,440 with shipping.
The additional perk of three years of free Supercharging on Tesla’s extensive network is potentially worth a few thousand dollars, depending on charging frequency. The free charging also comes for noninventory Model S and Model X vehicles ordered on the website for June delivery.
Tesla has been regularly adjusting prices and incentives, including generous lease deals on some models, following the January sticker reductions. In addition, buyers of the Model 3 sedan and Model Y crossover qualify for the federal tax incentive of up to $7,500 as of Jan. 1.
The EV maker is also offering discounts on inventory of the Model 3 for buyers who take delivery before June 30, according to its website.
Model 3 discounts vary by trim level, but were generally around $2,500 for inventory in the Bay Area. The most inexpensive base model had a price of $39,670 with shipping, representing a $2,210 discount. Some higher trim levels of the sedan had slightly higher incentives.
Tesla added three months of free Supercharging for inventory Model 3s last week.
Last year, the base Model 3 started at $48,440 with shipping and was not eligible for the federal tax incentive.
Tesla lost access to the incentive in 2020 after reaching its quota under the old rules. Changes to the tax break reinstated access for buyers of the Model 3 and Model Y on Jan. 1, but not the Model S and Model X because their prices exceed the caps set by the government.
No significant incentives on Tesla’s most popular vehicle, the Model Y, are being offered. But the crossover did receive the biggest price reduction in January. At the end of 2022, the Model Y started at $67,440 with shipping. The current base Model Y starts at $49,380 with shipping.
According to data from Experian, Tesla’s U.S. registrations totaled 211,842 in the first four months of the year, for a 52 percent increase compared with the year-earlier period. The automaker maintained its EV market share of about 60 percent from last year to this year, the four-month data shows.
From January through April, the Model Y crossover had a 99 percent increase in new registrations vs. the year-earlier period, while the Model 3 sedan grew by 28 percent, Experian said. Registrations for the Model X crossover rose 15 percent, while those for the Model S sedan fell 67 percent.
Exports of the Model S from Fremont to overseas markets in the first quarter may have been responsible for some of the sharp downturn. Tesla does not maintain a press office to seek comment on sales trends.
