Tesla (TSLA) - Get Report quietly has cut prices for its flagship Model S sedan and its Model S performance model by $3,000 each as demand for the flagship car falters, even as Tesla continues to churn out record numbers of EVs.
The electric carmaker lowered the starting price on its entry-level Model S available for delivery to $71,990 from $74,990. It also reduced its Tesla Model S Performance Model to $91,990 from $94,990.
The Tesla Model S Plaid, which was announced last month but won’t be delivered until late next year, didn’t get a price change with the configurator update. It is still listed at $139,990.
The pricing update follows price cuts across Tesla’s lineup earlier this year that affected Model 3, Model S, and the six-seat Model X.
Back in May, Tesla already had reduced the price of the Model S Long Range Plus by $5,000 for it to start at $74,990. And earlier this month, the electric vehicle maker cut prices for the cheapest version of its Model 3 by 8% to $37,000 after subsidies.
Prices for some longer-range models, which aren't eligible for subsidies, were cut by a deeper 15%.
The moves come as Tesla continues to surprise investors and analysts with its better-than-expected output and global sales trajectory, despite Covid-19 headwinds and increasing competition from the likes of Volkswagen, General Motors (GM) - Get Report, Ford (F) - Get Report and others.
Tesla earlier this month said it delivered a record 139,300 vehicles in the third quarter, topping analysts’ expectations of 136,000. More than 124,000 of those vehicle deliveries consisted of the Model 3 and Model Y.
That followed the company's recent Battery Day event, where Tesla CEO Elon Musk laid out long-term plans to produce a lower-cost battery, build a $25,000 electric car and eventually produce 20 million vehicles a year.
Shares of Tesla were up 0.05% at $442.52 in trading on Tuesday.