Tesla has once again slashed prices in the United States for its electric vehicles, ranging from 2% to nearly 6%, according to the company's website on Thursday. This marks the fifth price cut in Tesla's largest market since January, raising concerns among analysts about potential impacts on profitability.
These price reductions come as the US is set to implement stricter standards this month, which are anticipated to limit available EV tax credits. Tesla has reduced prices for both the Model 3 sedan and Model Y crossover by $1,000 and $2,000, respectively. The company has also decreased the prices for the more expensive Model S and Model X by $5,000.
Tesla previously stated that the impending stricter US standards would diminish the $7,500 tax credit for its base, rear-wheel drive Model 3, which has been available since January.
Some analysts who foresaw additional price cuts have expressed concerns that Tesla's industry-leading profit margins may be jeopardized.
Earlier this week, Tesla announced first-quarter deliveries of nearly 423,000 vehicles, representing a modest 4% increase from the previous quarter. The company has implemented price cuts in the United States, China, and other markets to stimulate demand.
Tesla has set a goal of delivering 1.8 million vehicles this year.
Since the beginning of the year, the company has cumulatively reduced the price of its base Model 3 by 11%, with a 20% reduction for its base Model Y.
