Tesla Cuts Prices on Its Most Expensive Models, Again

Tesla Inc. has lowered the base prices for its costliest electric cars for the second time this year.

The company says its Model S now starts at $71,250, down $3,000. The new base price for the Model X is $71,950, down $2,000.

Tesla dropped the prices of all its vehicles, including the Model 3 sedan, by $2,000 in January. Since then it also reinstated lower-priced “standard range” versions of the Model S and Model X.

The price cuts aim to bolster sales demand, after problems with the debut of the Model 3 in China and Europe caused a 31% drop in deliveries in the first quarter compared with the previous three-month period. Revenue plunged 41% over the same period.

Analysts are becoming increasingly worried that lower prices will make it even more difficult for Tesla to achieve a sustainable profit as it struggles to transition from a boutique seller to a mainstream carmaker.