Tesla cuts EV prices for the fifth time this year

For the fifth time in just over three months, Tesla has slashed the prices of its electric vehicles in the US, as Reuters reports. The company has cut prices by up to six percent across its lineup. The Model 3, for instance, is $1,000 less expensive than it was yesterday. It now starts at $41,990, according to Tesla's website.

There are bigger discounts on higher-end configurations. The Model Y Long Range and Performance models have dropped by another $2,000 to $52,990 and $56,990, respectively. The Model S and Model X have already seen major price cuts this year and have dipped by an extra $5,000 to starting prices of $84,990 and $94,990. As Electrek points out, the price of the base Model S has tumbled by $20,000 since 2022, while the Model S Plaid is over $25,000 less expensive than it was a few months ago.

Tesla said this week it delivered almost 423,000 EVs in the first three months of 2023 amid the initial waves of price cuts in the US, China and other countries. That figure marked a company record, as deliveries increased by four percent from the previous quarter. However, Tesla again missed analyst estimates.

The company aims to deliver 1.8 million EVs this year. It's not on track to do that yet based on the first-quarter figures. Although the multitude of price cuts could ultimately boost demand and make Tesla more competitive in an increasingly crowded sector, analysts have noted that the discounts could eat into the company's profit margins given the relatively small increase in deliveries they've spurred to date.

This article originally appeared on Engadget at https://www.engadget.com/tesla-cuts-ev-prices-for-the-fifth-time-this-year-161008384.html?src=rss