Tesla (TSLA) - Get Report launched into stealth mode again on Tuesday, quietly cutting the sticker price on its flagship Model S sedans as demand for the flagship car falters, even as Tesla continues to churn out record numbers of EVs.
Tesla on Tuesday lowered the starting price on its entry-level Model S available for delivery to $71,990 from $74,990, a $3,000 drop. 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. That includes a $5,000 price cut on the Model S.
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.