Tesla cuts US prices for fifth time since January

CNN: Tesla cut prices in the United States between 2 percent and nearly 6 percent, its website showed on Thursday, as the company extends a discount drive on its electric vehicles that analysts caution could hurt profitability.

The fifth such cut in Tesla’s largest market since the start of the year comes as the United States prepares to adopt tougher standards this month that are expected to limit EV
 tax credits.

Tesla (TSLA) cut prices on both versions of its Model 3 sedan by US $ 1,000 and on its Model Y crossover by US $ 2,000, the website showed. It also cut prices on both versions of its more expensive Model S and Model X by US $ 5,000.

The company has said the tougher U.S. standards would reduce the US $ 7,500 tax credit available for its base, rear-wheel drive Model 3 since January.

Some analysts who expected the further price cuts had flagged concern that Tesla’s industry-leading profit margins could be at risk.

This week Tesla reported first-quarter deliveries of almost 423,000 vehicles, up just 4 percent from the prior quarter after price cuts in the United States, China and other markets aiming to spur demand.
Tesla has set a target of 1.8 million deliveries this year.