Tesla has slashed prices for its electric vehicles in the US for the fifth time in a little over three months, according to Reuters. Price reductions of up to six percent have been applied across Tesla’s lineup, with the Model 3 now starting at $41,990, down by $1,000.
Higher-end configurations have seen more significant price drops, with the Model Y Long Range and Performance models reduced by an additional $2,000, and the Model S and Model X both receiving extra $5,000 discounts.
Tesla announced that it delivered nearly 423,000 EVs in Q1 2023 after implementing price cuts in the US, China, and other countries.
Although the price reductions could potentially boost demand and increase competitiveness in the EV market, analysts have expressed concerns that the discounts might negatively impact Tesla’s profit margins, as the price cuts have so far only led to a relatively small increase in deliveries.
