The brand is feeling the pinch and is dropping prices, but it's not all good news.
The global COVID-19 pandemic has had a profound impact on the world economy, and the auto industry has not been left unaffected, with even household names like Hertz disappearing over the horizon. In order to combat the lower demand for, well, everything, many businesses are offering discounts and incentives to try boost turnover. Tesla is now among those companies, with the marque's website today revealing that prices are to be slashed in North America by up to 6%. Want a new Tesla Model X? It costs less than 80 grand now. But, it's not all good news for customers. A report from Reuters reveals some vegetables with the dessert.
The Model S is down five grand from $79,990 to $74,990, the Model 3 is two grand cheaper at $37,990, and the Model X SUV is down from $84,990 to $79,990. In China, Model 3s are locally produced, so pricing won't change for this model, although imported Model S and Model X variants will drop by around 4%. However, the cloud inside this silver lining for American customers is a bit of a dark one. If you're not yet a Tesla owner, then buying a Model S sedan or a Model X SUV won't grant you free access to Tesla's network of Supercharger quick-charging stations. At current demand levels, Tesla can't afford more financial burdens, no matter how small.
The crisis that the world economy is entering in earnest is due to greatly reduced demand that is a direct result of lockdown restrictions. Whatever one's opinion on this may be, the fact of the matter is that the landscape of business is changing, and automakers are learning to change with it. As more employees start returning to work the world over, many are predicting that the human race's reliance on fossil fuels can be radically reduced at a quicker rate than most lawmakers thought possible. Full driving autonomy may still be in the distance, but electrification is already making its way into performance brands like Volkswagen's R performance models. Now may just be the best time to join the future, especially with a discounted Tesla countering the recent increase in price for Full Self-Driving Capability.