Tesla Model S price reduced to $69,420 after Elon Musk gets fired up by competition

With CEO Elon Musk announcing that the premium flagship sedan will now start at just $69,420, the Tesla Model S is poised to drop to its lowest price yet. The drop in the Model S price seemed to be associated with the announcement of the Lucid Air base model.

Musk’s Twitter post announcing the price drop of the Model S did not mention Lucid Motors by name, although he claimed that the “gauntlet has been thrown down,” implying that a competitor is in response to the price adjustment. In his announcement, with Musk saying that “the prophecy will be fulfilled,” the Tesla CEO seemed to be in light spirits.

Yesterday, Lucid published the price details for the Air sedan’s base model. The company announced that, after discounts, the base Air sedan would cost $69,990 and will be available by early 2022 and can be reserved for $300.

Not long after Lucid revealed the starting price of the base Air, Elon Musk lowered the Model S price to a meme-worthy $69,420. This resulted in the second time that the electric car manufacturer reduced the price of its flagship sedan. Just a few days ago, the Long Range Plus model was lowered from a starting price of $74,990 to $71,990.

Tesla’s ability to drop the price of the Model S “effective immediately” is remarkable, as noted by Tesla investor Steve Mark Ryan of YouTube’s Solving the Money Problem channel. This is particularly true given that the base air is not due until 2022, and by then it is very likely that Tesla would be able to further enhance the Model S.

Musk, particularly Lucid, appears to be fired up about the competition. It may not come as a surprise to some, given Lucid and Tesla’s tenuous relation. After all, Lucid CEO Peter Rawlinson is a Tesla alumnus, and he played a role in the Model S growth. He also noted that Lucid is ultimately “nothing” unless the company can actually mass-produce its first vehicle.

However, the recent Model S price drops may have exposed how the EV automaker will respond to possible competition in the future, regardless of Tesla’s old ties to Lucid’s CEO. It could have been put in the best words by Tesla owner-enthusiast Eli Burton, “@Elonmusk is a savage.” Tesla is indeed a savage, and it is one that won’t back down from a challenge.

Tesla bears were curious how the all-electric car manufacturer would react to competition from legacy car manufacturers and new EV firms. The latest actions by Tesla may just have provided some answers.

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