Tesla makes a deal and cuts car prices by up to $5,000

If you’ve been sitting on the fence about whether or not to buy a new Tesla, the electric carmaker is trying to sway your thoughts by cutting the prices of three of its car models.

As of Wednesday, Tesla had taken down the price of its Model 3 by $2,000, to $37,990 for its Standard Range Plus car that delivers 250 miles on a fullycharged battery. Tesla also slashed $5,000 off the sticker prices of its Model S sedan and Model X SUV. The Model S Long Range Plus now starts at $74,900 for a version with a range of 391 miles, while the topof-the-line Model S Performance sedan also had its price reduced by $5,000, to start at $94,990.

The Model X now starts at $79,990 for its Long Range Plus edition.

Tesla didn’t make any changes to the price of its new Model Y crossover vehicle, which starts at $46,690, and only began being delivered to customers in March.

The company didn’t respond to a request for comment about the price cut.

The company drew the ire of local and state officials earlier this month when Musk announced that it would reopen it Fremont factory in defiance of shelter orders during the coronavirus epidemic. Alameda County officials eventually reached an agreement with Tesla leaders to resume vehicle production at the facility under enhanced safety guidelines meant to prevent the spread of the disease.

Dan Ives, managing director with Wedbush Securities, said Tesla’s cutting of prices must be seen as a way to stimulate buyer demand in the United States. Auto sales on the whole are expected to see a sharp drop in quarterly results due to an economy that has been rattled by coronavirus-related business shutdowns and millions of layoffs.

“This is a smart strategic move in our opinion, given