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Tesla keeps slashing prices, by as much as 20% this time

The electric vehicle (EV) manufacturer Tesla has dropped the pricing of its vehicles once again, this time for customers in the United States, in an effort to boost demand.

This is the fourth time in recent months that the manufacturer has issued rebates or discounts on its products. In October, Tesla announced up to a 9% price decrease on the Model 3 and Model Y in China, marking the beginning of the current trend in pricing reductions. In an effort to attract more customers in China, Tesla once again lowered costs earlier this month, this time by over 14 percent.

There have been price cuts in an effort to attract customers in the United States and Canada. In the United States, Tesla customers could get a $3,750 discount on a Model Y or Model 3 if they scheduled delivery for the month of December 2022. According to the automaker’s website, the price cut was raised to $7,500 in the final week of the year.

Tesla is now again focusing on the American market. On Thursday, the firm updated its website with new pricing for customers in the United States. There has been an almost 20% price cut, bringing the base price of the long-range Model Y crossover down to $52,990 (not including taxes).

Due to the federal tax credit of $7,500, it is crucial that the new, lower base price be established. Under the new rules created by the Inflation Reduction Act that was enacted into law in August, the tax credit is only available for electric vehicles with a price tag of $55,000 or less.

Moreover, the high-performance Model 3 car from Tesla has had its price cut by 14% to $53,990. The Model S sedan and the Model X SUV, Tesla’s two oldest and most costly models, have just dropped in price. Despite this, the combined price of the two cars is still well over the $55,000 limit.

As a result of rising competition from established automakers, new entrants, and Chinese industry behemoths like BYD, Tesla has reduced prices.