The Tesla Model S is about to get a bit less expensive.

Tesla CEO and resident meme maker, Elon Musk just tweeted that the Model S sedan will soon be priced at $69,420. This pricing wasn’t done on a whim and a joint. The price cut is likely in response to Lucid undercutting Tesla on pricing a few hours ago.

As you can see in the tweet above, Elon Musk declares that “The gauntlet has been thrown down.”

Earlier today, Lucid announced that its entry level sedan will cost $77,400 minus a $7,500 U.S. tax credit. Since most buyers qualify for the credit, that brings the effective price down to $69,900. You see where this is headed, right?

With a new starting price of $69,420, this would be the second Model S price cut this week. Roadshow by CNET reported yesterday the automaker quietly cut $3,000 off the Model S earlier this week, potentially in a bid to outdo Lucid before its announcement today. Earlier this year, Tesla cut $2,000 off the starting price of the Model 3.

The Lucid Air is shaping up to be a serious contender to Tesla’s Model 3. The Air has all of the range of the Model 3 — even the entry-level version priced today matches the Model S’s 400+ range. The Air is also lighter, faster, and, frankly, newer. The Model S still has the same overall shape and feel since its 2012 introduction.

During a recent interview with TechCrunch, Lucid CEO Peter Rawlinson told editor Darrell Etherington that the Air would be available at a price “surprisingly lower than $80,000.” Though today’s pricing is hardly “surprising,” it puts the Lucid Air in the same price range as well-equipped mid-size European sports cars and, more importantly, the Tesla Model S.