Tesla cuts prices in the US again to spur demand

Tesla has once again cut prices in an effort to boost demand for its electric vehicles, according to Bloomberg.

The Model S sedan now starts at $84,990, a $5,000 cut from last month’s price. 

The Model X starts at $94,990, also a $5,000 drop.

The automaker delivered 422,875 vehicles globally in the first quarter.

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The S and X models made up just 10,695 of those deliveries.

Other Teslas, such as the Model 3 sedans and Model Y sports utility vehicles saw their prices trimmed by $1,000 and $2,000, respectively, bringing those starting prices to $41,990 and $49,900, according to its website. 

Tesla did a round of price cuts in the U.S. in January, reducing prices by 20% as a way to likely allow some buyers to qualify for a $7,500 U.S. government tax credit. 

TESLA SLASHES MODEL S AND X PRICES AGAIN BY UP TO $10,000

That reduction on the Model Y crossover brought the vehicle below a $55,000 cap, making it eligible for the tax incentive.

A 14% cut brought the price of a high-performance version of its Model 3 sedan to $53,990, also putting it under the cap.

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Tesla CEO Elon Musk suggested at that time the higher interest-rate environment was hurting demand.

Tesla will report earnings on April 19. 

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