The cheapest Tesla now costs less than $40,000

• Tesla's entry-level Model 3 sedan now costs $39,990 after the company's latest price cut. 
• Elon Musk's automaker has cut prices several times this year in an apparent bid to boost sales. 
• The average new electric vehicle sold for $58,940 in March. 

Teslas are cheaper than they've been in ages following a series of price cuts undertaken by Elon Musk's automaker this year. 

Overnight, the cost of Tesla's entry-level Model 3 dropped to $39,990, down from its most recent price of $41,990. Tesla discounted the sedan after new rules surrounding the federal electric-vehicle tax credit went into effect on Tuesday. The requirements mean the base Model 3 is now eligible for a $3,750 credit, rather than the maximum of $7,500. 

Since the cheapest Model 3's battery pack is Chinese, buyers don't qualify for the full incentive, which prioritizes vehicles made in North America using battery components and minerals also from North America or certain trade partners. The rear-wheel-drive car promises 272 miles of range and a 0-60-mph time of 5.8 seconds. 

Tesla also slashed prices of its Model Y SUVs by $3,000 across the board. It recently added a cheaper Model Y SUV to its website that used to be an off-menu option. That vehicle now starts at $46,990 before incentives, down from $49,990. 

Here's how much all of Tesla's models cost:

• Model 3: $39,990
• Model 3 Performance: $52,990
• Model Y: $46,990
• Model Y Long Range: $49,990
• Model Y Performance: $53,990
• Model X: $94,990
• Model X Plaid: $104,990
• Model S: $84,990
• Model S Plaid: $104,990