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Tesla cuts prices for its cars for the fifth time since the beginning of the year

Reduction reaches $5000

Tesla, which essentially started a price war by dramatically changing its pricing policy at the beginning of the year, continues to reduce the prices of its electric vehicles.

In the US, after another adjustment, the maximum price decline reached 6%, while analysts warn that it could reduce the company’s profitability for the year. Tesla has reduced the price of the base Model 3 by a total of 11% since the beginning of the year, and by 20% on the Model Y.

Tesla’s fifth price cut in its biggest market since the start of the year comes as the United States prepares to pass tougher standards this month that are expected to cap tax credits for electric vehicles.

Tesla cuts prices for its cars for the fifth time since the beginning of the year

Tesla
Tesla

Specifically, Tesla cut prices on both versions of its Model 3 sedan by $1,000 and the Model Y crossover by $2,000. They are offered at prices ranging from $41,990 and $49,990 respectively. The company also cut prices on both versions of the Model S and Model X by $5,000. They now start at $84,990 and $94,990 respectively.

This week, Tesla reported more than 422,000 vehicle deliveries in the first quarter , up just 4% from the previous quarter. This was achieved after price cuts in the US, China and other markets to stimulate demand.

Tesla has set a goal to ship 1.8 million vehicles this year.

 

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