The Tesla Model S is about to get a bit less expensive. Tesla CEO and resident meme maker, Elon Musk, just tweeted that the Model S sedan will soon be priced at $69,420. This pricing wasn’t done on a whim and a joint. The price cut is likely in response to Lucid undercutting Tesla on pricing a few hours ago.
As you can see in the tweet above, Elon Musk says “The gauntlet has been thrown down.”
Earlier today, Lucid announced its entry level sedan will cost $77,400 minus $7,500 US tax credit. Since most buyers qualify for the tax credit, that brings the effective price down to $69,900. You see where this is headed, right?
With a new starting price of $69,420, this would be the second Model S price cut this week. Cnet’s Roadshow reported yesterday the automaker quietly cut $3,000 off the Model S earlier this week, potentially in a bid to out do Lucid before their announcement today. Earlier this year, Tesla cut $2,000 off the price of starting price of the Model 3.
The Lucid Air is shaping up to be a serious contender to Tesla’s Model 3. The Air has all of the range of the Model 3 — even the entry-level version priced today matches the Model S’s 400+ range. The Air is also lighter, faster, and, frankly, new. The Model S still has the same overall shape and feel since its introduction in 2012.
During a recent interview with TechCrunch, Lucid CEO Peter Rawlinson told TechCrunch editor Darrell Etherington that the Air would be available at a price “surprisingly lower than $80,000.” Though today’s 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.