Musk Announces new price for Model S to undercut rival Lucid’s Air cost

Elon Musk of Tesla tweeted a price cut for its Model S in response to the rival new startup Lucid’s announcement of its Air model price.



Tesla CEO Elon Musk is gearing up for competition and has tweeted that the Model S sedan will soon be priced at $69,420.

This was in response to rival Lucid Motors announcing that their Air will be available at $77,400 minus a $7,500 U.S. tax credit, which puts it at $69,900.

In a tweet, Elon Musk declared that, “The gauntlet has been thrown down.”

This announcement is the second time that Tesla has declared a price cut for its model this week. Earlier, Tesla quietly shaved off $3000 from its Model S.

In another tweet Musk announced that Tesla’s new car Model Y, a small crossover, will be available in a seven passenger version.

Lucid unveiled its Model Air in September, this announcement has been one of the most exciting in the Electric Vehicle space. The new car rivals the Tesla S model in technology and mileage both.

Lucid presented a very impressive score of 517 miles EPA range, better than the 400 miles of the Model S.

To keep up, Tesla was quick to announce a tri-motor Model S Plaid edition on sale with a 520-mile range.

Tesla is reportedly working on a secret project code-named Palladium, which will see Model S and X receive a slew of updates.  The cars will get new battery modules and drive units, which will facilitate the superfast Plaid model.

It seems the new model will need a totally new assembly line.

The basic model Lucid Air is offering 480 hp, a 406-mile EPA range for the starting price of $69,900.The Air also has the advantage of being lighter, faster, and newer. The Model S design and overall look has not changed much since 2012.

Musk’s response has elicited mixed reactions with some calling his price cut and the number $69,420 puerile and childish.

But for customers, it translates to $5,500 savings on a landmark EV.

During a recent interview, Lucid CEO Peter Rawlinson said that the Air would be available at a price “surprisingly lower than $80,000.” Though the pricing is hardly “surprising,” it puts the Lucid Air in the same price range as well-equipped mid-size European sports cars and, more importantly, the Tesla Model S.

For Tesla, the year might have been good, with the share prices skyrocketing and the CEO pocketing some serious millions. But analysts are not too convinced that the numbers add up. Deliveries are lagging and China, a major manufacturer and consumer of Teslas is facing a trade war with the US due to the Pandemic crisis. Tesla’s Model S/X deliveries have plunged to 15,200 in the third quarter of 2020.

Tesla has cut its model prices for the seventh time this year. The car company has lost its market share in China and its inventory has doubled there.

There are plans for Tesla entering the South Asian market to make up for the shortfall in China and find new consumers for its inventory there.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Leave a Reply

Your email address will not be published.

Recent Posts

The Top 3 Movie Marketing Campaigns

The Top 3 Movie Marketing Campaigns

The bigger the production house, the bigger the budget for cinema marketing campaigns. Often it is almost as big as half the movie budget.
1 day ago
The Top Activist Investors Fight For People and Profits

The Top Activist Investors Fight For People and Profits

In a democracy, people vote for change. Thus, investor activism can also be called shareholder democracy. An activist investor can be an individual or a group that buys the shares
2 days ago
The El Salvador Bitcoin City: Powered By a Volcano

The El Salvador Bitcoin City: Powered By a Volcano

Addressing the crowds at a promotional event for bitcoin, in the town of Mizata, Bukele assured his citizens that the Bitcoin city will have everything. “Residential areas, comme
3 days ago
Why Do CEOs Swear? Because They’re Intelligent That’s Why

Why Do CEOs Swear? Because They’re Intelligent That’s Why

A 2015 study found that highly intelligent people are better at coming up with curse words as they have a greater vocabulary and are not afraid to use it. Timothy Jay, professor em
3 days ago
Look Beneath The Surface For the Truth About Floating Solar Farms

Look Beneath The Surface For the Truth About Floating Solar Farms

As of 2021, India and China account for some of the biggest solar farms in the world. The two countries combined are home to six of the ten biggest floating solar farms in the worl
3 days ago
Best Retirement Plans For Entrepreneurs While Inflation Soars

Best Retirement Plans For Entrepreneurs While Inflation Soars

As of 2021, over 150 million US workers identified themselves as self-employed. This means that they are responsible for their own retirement plans. Employees of big firms tend to
4 days ago