Tesla Announces Price Drop Ahead of Q1 Earnings Report

Tesla Announces Price Drop , Ahead of Q1 Earnings Report.

ABC reports that Tesla has announced its fourth price cut in the United States this year, lowering the starting costs of the company's two top-selling models.

Tesla dropped the price of the Model Y small SUV, the company's top-seller, by $3,000.

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The company's Model 3 small sedan also saw its price drop about 5%, equal to $2,000.

ABC reports that the price cuts to the Model 3 will make more cars eligible for the U.S. government's $7,500 electric vehicle tax credit.

A Model 3 loaded with options would exceed the government's $55,000 price limit required to be eligible for the tax credit.

After experiencing a major dip in 2022, Tesla stock has bounced back in 2023, rising 50% since the year began.

Earlier this week, Tesla announced similar price drops overseas, including in Europe, Israel and Singapore.

According to Tesla CEO Elon Musk, affordability has limited potential demand for the company's vehicles.

According to Tesla CEO Elon Musk, affordability has limited potential demand for the company's vehicles.

There is plenty of demand for our products, but if the price is more money than people have, that demand is irrelevant, Elon Musk, Tesla CEO, via Twitter.

ABC reports that Tesla's first-quarter sales increased by 36%, fueled by previous price cuts, but still came in under analysts' expectations.

Between January and March, Tesla said that it delivered a quarterly record of 422,875 vehicles worldwide, up over 100,000 units from the same time in 2022.

Between January and March, Tesla said that it delivered a quarterly record of 422,875 vehicles worldwide, up over 100,000 units from the same time in 2022