Tesla Inc CEO Elon Musk says recent price cuts on other models have spurred demand。On Sunday night, local time, Tesla's website said the company had lowered the prices of two of its most expensive electric cars in the United States.。The price cut is Tesla's fifth adjustment since the beginning of the year.。

Specifically, the price of its luxury sedan Model S has fallen from $94,990 to $89,990, a price cut of 5.2%, and the price of the Model S Plaid model also fell from $114,990 to $109,990, a decrease of 4.3%。The price of the luxury SUV Model X fell from $109,990 to $99,990, a drop of 9.1%, the Model X Plaid model dropped from $119,990 to $109,990, a decrease of 8.3%。

Musk has repeatedly said in recent months that Tesla will focus on lowering prices to drive demand, saying last week at Tesla Investor Day: "People's desire to own Tesla is very high.。The limiting factor is their ability to buy Tesla。"。

In January, Tesla slashed prices in all markets, with the biggest drop being the base Model Y, with a price cut of 1.$30,000 to $52,990, a decrease of 20%。Many analysts see this as the start of a price war for the EV market leader。Since then, Tesla has been adjusting the prices of its vehicles on sale at a speed and frequency that even exceeds the adjustments made by some established automakers to the prices of inventory vehicles。

Tesla's unscrupulous price adjustment stems primarily from its higher gross margins。Behind its high profit margins are lower production costs.。To control production costs, Tesla has invested heavily in new manufacturing technologies, such as replacing small metal parts with large castings.。Tesla brings battery manufacturing and other parts of the supply chain in-house and standardizes vehicle design to improve economies of scale.。

According to relevant data, Tesla's current gross profit on bicycles is about twice that of Volkswagen, four times that of Toyota, and five times that of Ford.。

At the Investor Day event on March 1, Musk and other leaders also re-emphasized future productivity and cost reductions.。

In addition, Tesla will launch a new Model 3 code-named "Highland" in the second half of this year, and will upgrade the Model Y code-named "Juniper" next year.。