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- May 8, 2025 8:11 pm
- California
April 10, 2023: On Thursday, Tesla slashed costs in the United States by 2% and almost 6%, its website showed, as the firm extends a discount drive on its electric vehicles that critics caution could not benefit profitability.
The fifth such slash in Tesla’s most significant market from the start of the year comes as the U.S. prepares to adopt stricter standards that are anticipated to limit EV tax credits this month.
The website showed that Tesla cut costs on both versions of its Model 3 sedan by $1,000 and on its Model Y crossover by $2,000. It also cut costs on both versions of its expensive Model S and Model X by $5,000.
The firm has said the more demanding U.S. standards would decrease the $7,500 tax credit present for its base, rear-wheel drive Model 3 since January.
A few analysts anticipating further price cuts had flagged that Tesla’s industry-leading profit margins could be at risk.
This week Tesla said first-quarter providing almost 423,000 vehicles, up just 4% from the last quarter after a price slash in the U.S., China and different markets aiming to spur demand.
Tesla has set an aim of 1.8 million deliveries this year.
Tesla has slashed the price of its base Model 3 by a combined 11% since the beginning of the year, with a 20% reduction on its base Model Y.
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