Tesla (TSLA.O) cut U.S. prices by 2% to roughly 6% on Thursday, extending a negotiation effort that might hurt profitability.
The sixth dip in Tesla’s largest market since January comes as the U.S. moves to curtail E.V. tax incentives this month.
The Tesla website showed $1,000 price decreases on Model 3 cars and $2,000 on Model Y crossovers. Model S and Model X were also $5,000 cheaper.
Since January, the company has said tougher U.S. rules will slash the $7,500 tax credit for its base, rear-wheel drive Model 3.
Tesla’s industry-leading profit margins concerned analysts expecting greater price cuts. Tesla shipped 423,000 vehicles in the first quarter, up 4% from the previous quarter, due to price cuts in the U.S., China, and other areas.
Tesla predicts 1.8 million deliveries this year.
Tesla’s base Model 3 decreased by 11% and Model Y by 20% since January.
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