Tesla slashes EV prices for the sixth time this year in the US

Tesla Inc. reveals new price cuts for some of its electric vehicle models in the United States. This will be the company’s sixth reduction this year, and it was announced ahead of its first-quarter earnings results.

Tesla said it would slash the prices of some Model Y and Model 3 EVs but only in the U.S. The company shared this plan through a post on its own website. It is lowering the EV prices for the sixth time this year despite concerns about the effects this would bring to its profit margins.

According to Reuters, the EV maker is scheduled to report its 2023 Q1 (January to March) quarter results this week. The price cuts for the Model Y may reach up to $3000, and for its Model 3 “rear-wheel drive,” the discount could be up to $2000.

So far, Tesla has reduced the prices of its base Model 3 by 11% in this year alone and Model Y by 20%. It was noted that the discounts come as the U.S. prepares to implement tougher standards that will effectively limit tax credits on EVs. Tesla cars’ current largest market remains to be its home country.

Not long ago, the Elon Musk-owned electric vehicle firm also reduced the prices in other countries, including Singapore, Israel, Europe, South Korea, Australia, and Japan. These EV price markdowns started in China earlier this year, and the cuts were made in an attempt to increase the demand.

While this is Tesla’s sixth time lowering its prices, this is the second this month. Bloomberg reported that this move just shows that Elon Musk is willing to sacrifice profitability just to boost the demand for their company’s EVs.

“We are not ‘starting a price war,’” the Tesla chief tweeted last week. “We are just lowering prices to enable affordability at scale.”

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