Tesla has cut the prices of its Model 3 and Model Y electric vehicles (EVs) in the US for the sixth time this year, according to a CNBC report. The move is aimed at stimulating demand for the two models ahead of the company's first-quarter earnings results.
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Prices for the Model 3 Standard Range Plus have been reduced to $35,990, while the Model Y Long Range's price has been lowered to $47,990. The Model 3 Performance has been reduced to $45,990, down $4,000 from the previous price of $49,990, while the Model Y Performance now costs $57,990, down $1,000 from the previous price of $58,990.
The price cuts come as Tesla faces increasing competition from traditional automakers and Chinese EV makers. With the company’s market share under pressure, Tesla is aggressively cutting prices to maintain its dominance in the EV market.
Impact on the auto industry
The price cuts have created a headache for the entire auto industry, as traditional automakers are struggling to match the prices of Tesla's vehicles. As per a report by Business Insider, the price reductions by Tesla have made its Model 3 cheaper than many gas-powered cars, which is causing trouble for traditional automakers who cannot match the price points.
In addition, Tesla's price cuts are forcing other EV makers to reduce their prices to remain competitive. This move could lead to a price war in the EV market, which may ultimately benefit consumers.
Tesla's first-quarter earnings report
Tesla's first-quarter earnings report is expected to show a profit for the company, driven by strong sales in China and Europe. The price cuts in the US are aimed at further boosting sales and increasing the company's market share.
According to a report by Livemint, Tesla sold over 184,000 vehicles globally in the first quarter of this year, which is an increase of 10.5% from the previous quarter.
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