Tesla slashed prices across its vehicle lineup by up to six percent on Thursday. Just the most recent price adjustment for the U.S. market, the automaker appears to be sacrificing a little bit of its profitability in pursuit of higher volumes.
The American automaker cut the price of its entry-level vehicle, the Model 3, by $1,000. The electrified sedan now has a base MSRP of $41,990 (excluding delivery fees), its website shows, a decrease of about two percent, as compared to last week.
The most affordable vehicle in Tesla’s lineup, the Model 3’s price drop comes as its access to incentives is halved. Again, according to Tesla’s website, the IRS’s new regulations on battery sourcing, mean that buyers looking for the Model 3 Rear-Wheel Drive will now only receive $3,750 in tax credits, rather than the full $7,500 they were previously entitled to.
Read: Tesla Changes Prices For The 4th Time In A Month, Model 3 Discounted, Model Y Hiked
Elsewhere in the lineup, the Model Y compact crossover’s price has been reduced by up to $2,000. The automaker has also introduced a new base model version of the vehicle, simply called the Model Y (as opposed to Model Y Long Range or Performance), which starts at $49,990.
The MSRPs for Tesla’s larger vehicles, the Model X and S, have both been cut by $5,000, meanwhile. Sales of those vehicles are at their lowest levels since the third quarter of 2021, so incentivizing shoppers to look at the more expensive vehicles will likely be important to Tesla.
Following the multiple price cuts that have occurred in 2023, the prices for the Model 3 have fallen by as much as 16 percent, or $10,000, reports Bloomberg. The Model Y has seen its MSRP drop by as much as 20 percent, while the Model S and X have seen prices slashed by 23 and 25 percent, respectively.
Tesla’s CEO, Elon Musk, has set the company the goal of growing by 50 percent per year, by volume. Last year, its sales only expanded by 40 percent, and in the first quarter of 2023, its sales are only 36 percent stronger than they were in the Q1 2022.
