By Abu hasim.A @

Tesla has announced price cuts for two of its vehicles, the Model S and the Model X. Alyssa Lukpat reports The Wall Street Journal:

Tesla Inc. decrease; red down pointing triangle lowered the prices of two of its most expensive models in the U.S., the Model S and Model X, in its latest round of price cuts as the company tries to boost demand in a competitive market.

Tesla dropped the base price of its Model S luxury sedan from $94,990 to $89,990, which is about a 5% cut, according to the company’s website. Tesla lowered the base price of its Model X sport-utility vehicle from $109,990 to $99,990, which is roughly a 9% decrease.

Tesla also cut prices in January for its two bestselling vehicles, lowering the price of its baseline Model Y by 20% and its high-performance Model 3 sedan by 14%. Some investors and Wall Street analysts believed Tesla dropped the prices to squeeze competitors, to respond to waning demand and to allow some buyers to qualify for a $7,500 federal tax credit.

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