Tesla's price cuts continue, this time for its two most expensive products, the Model S sedan and Model X SUV. According to Reuters, the carmaker failed to meet its 2022 deliveries target by 50 percent due to supply chain issues and slowing demand. However, Tesla remains adamant about delivering as many as 2 million vehicles in 2023.

The electric vehicle manufacturer plans to spur demand with price cuts. It started with the Model 3 sedan and Model Y crossover, which saw significant reductions by about six and 20 percent, respectively. Next up, however, are its two range-topping products. Overnight, the base price for a Model X dropped by nine percent, while a Model S is now cheaper by 4 percent. Depending on the trim level, this represents a savings of up to $10,000.

Tesla Model S and Model X Price Drop

According to Reuters, Must said during Tesla's investor day: "The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,"

There are other factors affecting demand as well, like age. For example, the Model S has been in production since 2012, and the Model X since 2015, making at least the sedan about a decade old. While the carmaker has gone to great lengths to update these models to keep them fresh, they're past a traditional vehicle's lifecycle.

To this end, the rumors suggest the carmaker will introduce an updated Model 3 and Model Y at some point this year, which should help demand. While we have yet to see how extensive these changes will be, we should see an updated cabin, tweaked exterior, and likely greater range and performance if history repeats itself.

For performance EV enthusiasts, the Model S Plaid and Model X Plaid now both start at $109,990, making them bargains given the level of range and performance they deliver. At the time of writing, both high-performance variants are available with delivery dates within this month, an unusual circumstance for such a previously desired vehicle.