Tesla cuts U.S. prices for sixth time this year ahead of Q1 results
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For the sixth time this year, Tesla (NASDAQ:TSLA) is cutting prices in the United States for some of its Model Y and Model 3 vehicles amid concerns about its profit margins.
In the U.S., the prices of Model Y AWD, Long Range and Performance vehicles have been lowered by $3,000. The Model Y AWD will go from $49,990 to $46,990; long range from $52,990 to $49,990; and Performance from $56,990 to $53,990.

It has also lowered the price for the Model 3. The standard range RWD went from $41,990 to $39,990, marking the first time Tesla (TSLA) offered a vehicle under $40,000. While some of the Model 3 variants are still eligible for the $7,500 federal tax credit, others have been reduced to $3,750, following the U.S. Treasury's updated battery sourcing guidance for EV tax credits.
Over the past two quarters, the automaker has also slashed prices of its EVs in Mexico, Europe, Israel, Singapore and China, where it has sparked a price war among competitors.
When Tesla (TSLA) reported its earnings for 2022 in January, Elon Musk said the company was seeing orders "almost twice the rate of production." Earlier this month, the automaker also cut prices on all U.S. models, with Model 3 and Model Y sticker prices sliding by at least $1,000, and Model S and Model X prices falling by $5,000 or more.
Tesla (TSLA) has additionally reduced the price of its base Model 3 by 11% in the United States since the beginning of the year, with a 20% drop on its base Model Y.
Despite giving discounts in the United States, China, Japan, Australia, and South Korea to encourage demand, the company's Q1 deliveries only increased by 4% to record 422,875 electric vehicles in the first quarter.
Tesla (TSLA) is set to report its Q1 numbers on April 19. The current consensus EPS estimate is $0.86 and revenue estimate is $23.46B.

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