Tesla cuts U.S. prices again ahead of 1Q earnings release
Tesla dropped the starting prices for its two top-selling models overnight, the company’s fourth price U.S. price cut this year
DETROIT AP" target="_self">(AP) — Tesla dropped the starting prices for its two top-selling models overnight, the company's fourth price cut in the U.S. this year.
The company lopped $3,000, or about 6%, off the starting prices for all three versions of the Model Y small SUV, Tesla's top-seller. It also cut $2,000, or about 5%, from the starting price of a version of the Model 3 small sedan.
Tesla could have cut the Model 3 prices to make more cars loaded with options eligible for the U.S. government's $7,500 electric vehicle tax credit. With options, some Model 3s would exceed the government's $55,000 price limit for cars to be eligible for the credit.
But some industry analysts say demand may be slowing for the company's vehicles as more competition enters the market. Others say Tesla is using its high profit margins to take market share from competitors.
