Tesla has instituted two price cuts this week on its Model S Long Range sedan. CEO Elon Musk announced the new lower price on Twitter, obviously. Musk, a fan of internet culture and “dank memes,” reduced the price to a comical $69,420. If you don’t get it, try Googling around. Good luck with that.

Price Cuts in North America and China

The second price cut for the high-end sedan brings the sticker price of the Model S below the psychological level of $70,000. The company also reduced the price by three percent, where it had previously also cut the starting price of the Model 3.

Tesla first introduced its Model S in 2012. However, it has faced competition from the automaker’s own less expensive mass-market Model 3, which was launched in 2017. The Model 3 currently starts at $37,990, making it more attractive than the Model S for many potential buyers.

Growing Competition

Analysts have speculated that price reduction was likely in response to price cuts by EV rival Lucid Motors. They are selling their luxury sedan Air model at a starting price of $69,900. That includes a $7,500 U.S. government EV tax credit, for which Tesla vehicles are no longer eligible.

The price cuts also come as competition in the EV market — long dominated by Tesla — continues to heat up. Several traditional automakers are launching new EVs this year and in 2021. Germany’s Daimler AG, for example, is scheduled to release an electric version of its Mercedes-Benz S-class luxury sedan, the EQS, early next year. Tesla may have set the bar, but they will have to be flexible to stay on top.

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Devon is a veteran of the online publishing world, having written about everything from cars to movies, sports to parenting. Although he drives a minivan (#DadLife), he's especially fond of classic muscle cars.