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IPFS News Link • Business/ Commerce

Tesla "Midnight Massacre": Musk Cuts Prices Across Entire US Lineup; Demand Cliff "Se

• by Gordon Johnson

Materially hurting the "unlimited demand" thesis so many TSLA pundits use to support the company's current forward EV/EBTIDA multiple of 26.4x, and going against Musk's claim that TSLA would see Model 3 demand "slip to about 500,000"/year in a recession (link), this morning at around 12:30am EST TSLA slashed the US prices for its entire lineup of EVs by $2K-$5K across the board.

More specifically, for the Model 3, its most affordable and highest selling US car, the staring price for the M3 SR+ is now $37,990 vs. $39,990 prior. Moving to the Model S LR+, TSLA's luxury sedan, the price was cut $5,000 to $74,990; the price for the Model S Performance was also cut by $5,000 to $94,990. Moving to the Model X, similar to the Model S, both versions of the luxury electric SUV saw an overnight price cut of $5,000, with the LR+ iteration of TSLA's egg-shaped SUV now touting a price of $79,990. Finally, with respect to the Model Y, TSLA left the US prices for these cars unchanged.

Exhibit 1 - Model 3 SR+ Price Cut $2K Early this AM