Just nine days after the last price cut, Tesla’s at it again shaving dollars off the window sticker of some Model Y and Model 3 vehicles in the U.S.
The move was made just hours before the EV maker’s first quarter earnings announcement. It is the seventh price cut by the Texas-based automaker this year, as it looks to offset not being able to take full advantage of the federal EV tax credits.
The company’s website showed late on Tuesday that it cut prices of its Model Y “long range” and “performance” versions by $3,000 each and of its Model 3 “rear-wheel drive” by $2,000 to $39,990, according to Reuters.
Tesla’s multiple reductions has resulted in the price of the base Model 3 falling 11% this year and that of its base Model Y by 20%. While no formal announcement has come with the cuts, it’s assumed the company is looking to offset the fact that not all of its vehicles qualify for the recently revised federal tax credits.
While the U.S. is Tesla’s biggest market, the company’s dropped prices in other places as well, including Europe, Israel, Singapore, Japan, Australia, South Korea and it’s expanding some cuts it began in January.
Earlier this month, Tesla announced it was cutting $5,000 off the price of the Model S and Model X, plus $2,000 off the Model Y and $1,000 off the Model 3 sedan.
The basic version of Tesla’s Model S is now $84,990, down from $89,990 at the beginning of March. At the same time, Model X plaid has now been lowered to $94,990, its website shows. Neither would have qualified anyway so many potential buyers may see this a bonus, and eschew a more expensive Lucid Air or some other non-Tesla vehicle.
Last month Tesla slashed $10,000 off its Model X SUV and $5,000 on the Model S.
The move comes after previous price cuts of up to 20% in January.
“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Musk said during an online investor briefing last week.
Tesla’s product mix is heavily weighted towards the less expensive Model 3 sedan and Model Y crossover. Together, those models made up 96% of Tesla’s 2022 sales. The Model S and Model X start with substantially higher prices, and Musk intends to increase sales of the top trims with these price reductions.
The price cuts appear to have boosted Tesla sales as it reported a 36% increase in first quarter deliveries last week. In the first three months of this year it sold 422,875 vehicles, mostly Model 3 and Model Y cars.