On Thursday, Tesla’s website showed price reductions in the United States ranging from two percent to nearly six percent, as the company continued a discount drive on its electric vehicles that analysts say could affect profitability.
As the United States prepares to implement stiffer requirements this month, which are expected to limit EV tax credits, Tesla has announced its fifth price decrease in its largest market since the beginning of the year.
According to the company’s website, Tesla has reduced the price of both of its Model 3 sedan configurations by $1,000 and the price of its Model Y crossover by $2,000. The company also announced a $5,000 price decrease across the board, even on the higher-end Model S and Model X.
For its base, rear-wheel drive Model 3, the firm has indicated since January that the $7,500 tax credit would be reduced due to stricter U.S. rules.
Experts who predicted the price drops were worried that Tesla’s record profits could be threatened.
Despite price cuts in the US, China, and other places to stimulate demand, Tesla revealed this week that first-quarter deliveries were nearly 423,000 units, up barely 4% from the prior quarter.
The company has set a goal of delivering 1.8 million vehicles in 2018.
Since the beginning of the year, Tesla has reduced the price of its base Model 3 by a total of 11%, while it has reduced the price of its base Model Y by a whopping 20%.