Tesla reduced prices in the US again, this year by as high as $5,000

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  Tesla reduced the prices of its most expensive vehicles in the fifth reduction this year.
  
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  Model S and Model X now available at $5,000 off, with $2,000 off for the Model Y.
  
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  These cuts are coming as the US introduces new rules regarding EV tax credits later in the month.
  

Tesla has reduced the prices of two of its most costly cars in its fifth reduction this year, as the US prepares for new rules regarding EV tax credits.

According to Elon Musk's electric vehiclemaker, the Model S and Model X have been slashed by $5,000 each. The Model 3 sedan's price has been lowered to $1000, while the Model Y is now $2,000 lower.

The base version of Tesla's Model S costs $84,990 now, down from $89990 at the start of March. The Model X plaid price has been lowered to $94,990, as its website indicates.

These tax credits were reduced after the US Treasury Department (IRS) issued new guidance in March about which EV models could qualify for tax credits of $3750 or $7500. The new rules came into effect this month.

The Model S and Model X might not be eligible for tax credits. However, the proposed guidance states that eligible vehicles must have final assembly in North America. It also requires that the Manufacturers Suggested retail price of cars is $55,000 and pickup trucks, vans, or SUVs are $80,000.

Tesla previously stated that the tax credit of $7500, which was in effect since January, would be reduced for its Model 3 starting March 31. It offered deep discounts of 10,000 on its Model X SUV, and $5,000 on its Model S.

Tesla reported an increase of 36% in its first quarter deliveries, indicating that the price cuts may have helped boost sales. It sold 422,875 Model 3 and Model Y vehicles in the first three months.

Insider reached out to Tesla for comment outside of normal business hours. Tesla did not immediately respond.

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By: jmann@insider.com (Jyoti Mann)
Title: Tesla’s cut prices in the US yet again, this time by as much as $5,000
Sourced From: www.businessinsider.com/tesla-cut-prices-us-again-model-s-model-x-2023-4
Published Date: Sat, 08 Apr 2023 09:15:00 +0000

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