Tesla knocks $5,000 off Model X price as coronavirus hurts demand

Just call it the coronavirus discount.

Tesla this week cut the prices of its vehicles in North America as auto demand has taken a hit thanks to pandemic-related lockdowns across the region.

The Model X SUV, which was previously selling for $84,990, on Wednesday had its price reduced to $79,990. Tesla’s cheapest car, the Model 3 sedan, had $2,000 knocked off of its original price tag and now retails for $37,990.

Customers will have to pay up elsewhere, however: Tesla said its Supercharger quick-charging service will no longer be available free-of-charge to new buyers of those two vehicles.

Hopeful Tesla customers in China will also see a 4 percent price reduction for the Model X and Model S vehicles.

The price cuts come shortly after Tesla restarted its Fremont, Calif. factory following a weeks-long standoff with local authorities. CEO Elon Musk briefly defied a state lockdown order which had required the plant to cease operations.

Auto retail sales in the United States likely halved in April from a year earlier, according to data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.

Automakers including General Motors, Ford and Fiat Chrysler, are offering 0 percent financing rates and deferred payment options for new purchases.

Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.

Shares of Tesla were down slightly Wednesday morning, at $814.80.

With Post wires.