"The gauntlet has been thrown down! The prophecy will be fulfilled," Musk tweeted Wednesday. "Model S price changes to $69,420 tonight!"
The announcement comes after one of the electric vehiclemaker's competitors, Lucid Motors, said their luxury electric sedan, the Lucid Air, would start at $77,400. However, Lucid noted customers may also be eligible for a federal tax credit of $7,500, which would effectively cut the price down to $69,900.
According to the Lucid Motors website, the Lucid Air features 480 horsepower and a projected range of 406 miles on a single charge--though the EPA has yet to test it.
Musk's tweet signals the second cut this week after the company cut the Model S price by $3,000 overnight.
The $3,000 price reduction brought the Model S Long Range Plus down to a starting price of $71,990 in the U.S. and a $91,900 starting price for the Model S Performance version. However, the Model S Plaid was not changed from its starting price of $139,990.
The new price tag of $69,420 means the second cut would take another $2,570 off the Model S price tag this week for a total reduction of $5,570.
The new Model S price comes as Tesla reported 15,200 combined global deliveries for the Model S and Model X SUV in the third quarter, which was down nearly half from the 27,660 recorded in 2018. Overall Tesla deliveries set a quarterly record of 139,300 on the strength of the lower-priced Model 3 and Model Y.
Musk also teased on Wednesday that production for the seven-seater Model Y will begin next month, with initial deliveries expected to begin in early December.
Tesla stock closed at $461.30 per share Wednesday, up more than 3 percent.
Fox News' Gary Gastelu contributed to this report.