(Seeking Alpha) – Tesla (NASDAQ:TSLA) has cut the price of the Model S for the second time in one week, after EV startup Lucid Motors, led by former Tesla executive Peter Rawlinson, announced the base price of its upcoming Air EV would cost $69,900 (after tax credits).
“The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight!” Elon Musk wrote on Twitter. Earlier this week, the price was reduced from $74,990 to $71,990.
Lucid has projected that the base model of their sedan will deliver an EPA estimated range of 406 miles per single charge vs. 402 miles per charge on the Model S.
Tesla introduced its Model S in 2012, but in recent years the car has faced competition from the less expensive, mass-market Model 3 sedan, which currently starts at $37,990.
According to Credit Suisse, the Model S makes up only around 5% of Tesla’s unit volume.