Tesla has introduced a new round of price cuts, the sixth time it has done so this year.
The new pricing, which comes ahead of the company’s first quarter earnings to be announced later today, is listed on the company’s website and brings the Model 3’s starting price to $41,380, down $2,000 from the previous starting price that was only introduced in early April.
For the Model Y, the starting price is now $48,380, or $3,000 less than before. The Long Range and Performance grades have also seen $3,000 price cuts, with their starting prices coming in at $51,380 and $55,380, respectively.
This follows January price cuts of up to 20% across Tesla’s lineup. Tesla then lowered Model S and Model X prices in March, and again in April, bringing the starting price of the S down to $86,380 and the price of the X down to $96,380.
All figures mentioned include a $1,390 destination charge.
While some of Tesla’s lineup is still eligible for the full $7,500 in federal tax credits, Tesla notes that the Model 3 with rear-wheel drive only qualifies for $3,750 in credits due to new rules introduced on Tuesday that take into account sourcing of critical minerals and battery components.
Tesla delivered 422,875 vehicles in the first quarter of 2023. While that total was 4% higher than the previous quarter and 36% higher year-over-year, it also marked the second quarter in a row in which Tesla produced significantly more vehicles than it delivered to customers.
In February, market analysts predicted an EV price war, but outside of Tesla, prices have mostly held steady. The Ford Mustang Mach-E received a price cut of up to $5,900 in January, and more recently Ford raised prices on the F-150 Lightning pickup truck for a fourth time.