- Tesla cut the prices of its two most expensive cars in the fifth reductions this year.
- The Model S and Model X are now $5,000 cheaper, with $2,000 off the Model Y.
- The cuts come as the US brings in new rules on EV tax credits later this month.
Tesla has cut prices on two of its most expensive cars in its fifth reductions this year as the US prepares to bring in new rules on EV tax credits.
Elon Musk’s electric carmaker has slashed $5,000 off both the Model S and Model X, according to the company’s website. The price of the Model 3 sedan has been lowered by $1,000 and the Model Y by $2,000 respectively.
The basic version of Tesla’s Model S is now $84,990, down from $89,990 at the beginning of March. At the same time, Model X plaid has now been lowered to $94,990, its website shows.
The reductions comes after the US Treasury Department and IRS issued new guidance in March on which EV models can qualify for tax credits of $3,750 or $7,500, with the new rules coming into force this month.
Both the Model S and Model X may not qualify for tax credits, however, as the proposed guidance requires eligible vehicles to have final assembly completed in North America and must not exceed a Manufacturers Suggested Retail Price of $55,000 for cars and $80,000 for pickup trucks, vans or SUVs.
Tesla previously said that a tax credit of $7,500, which has been in place since January, will be lowered for its Model 3 from March 31. Last month it offered deep discounts of $10,000 on its Model X SUV and $5,000 on the Model S.
The price cuts appear to have boosted Tesla sales as it reported a 36% increase in first quarter deliveries last week. In the first three months of this year it sold 422,875 vehicles, mostly Model 3 and Model Y cars.
Tesla didn’t immediately respond to Insider’s request for comment, made outside normal working hours.