Tesla cuts US prices again ahead of earnings report
Tesla will report quarterly results on Wednesday with investors looking at how this year's price cuts have affected the bottom line
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Tesla has cut prices on some of its electric vehicles for the second time this month and the sixth time this year.
Tesla cut the prices of the Model Y 'long range' and 'performance' vehicles by $3000 each and the Model 3 with rear-wheel drive by $2000 to $39,990.
So far this year, the Elon Musk-led company has cut U.S. prices of its base Model 3 by 11% and that of its base Model Y by 20%.
The move comes as tougher standards will be introduced that will limit EV tax credits.
TESLA CUTS PRICES IN THE US AGAIN TO SPUR DEMAND
A Tesla Model 3 sedans and Tesla Model X sport utility vehicle at a new Tesla showroom. (REUTERS/Yilei Sun / Reuters Photos)
Earlier in April, the Model S sedan's starting price was reduced to $84,990, a $5,000 cut from the prior month's price.
The Model X starting at $94,990 was cut by $5,000.
The company has been trying to increase interest with price cuts in Europe, Israel and Singapore as well as in Japan, Australia and South Korea.
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A Tesla Model 3 is seen in a showroom in Los Angeles, California. (REUTERS/Lucy Nicholson / Reuters Photos)
Tesla has also expanded a discount drive it started in China in January.
Investors will be looking at how this year's price cuts have affected the bottom line as reports for the first quarter are released on Wednesday.
Tesla has reported a 4% sequential rise in deliveries in the first quarter, much less than the 17.8% sequential rise in the prior quarter.
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Tesla CEO Elon Musk alongside the electric automakers logo. (Getty Images/AP / Getty Images)
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Analysts are expecting Tesla to report a 24.2% year-on-year increase in first-quarter revenue to $23.29 billion, with the average profit estimate falling by about 2.4%, according to Refinitiv data.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 242.84 | -6.14 | -2.47% |
Through Tuesday, Tesla shares have gained nearly 50% this year.
Reuters contributed to this report.