Tesla Inc announced another price cut of its electric vehicles in the United States as part of its strategy to spur demand amid global economic slowdown.
According to the price shown on its website, the performance version of the Model 3 has been cut by 1.9%, and the basic version of the Model S has been cut by 5.6%.
The cut came after the EV producer’s Chief Executive Office Elon Musk repeatedly said in recent months that the company would focus on cutting prices to boost demand.
This is the third time that Tesla cut its price this year. The move proved to be a success as the company recently reported Tesla delivered 422,900 vehicles in the first quarter of this year, beating the estimated 421,200 deliveries of Wall Street and also setting a new record for the company. Tesla also produced 440,800 cars in Q1, beating the estimated 432,500. In the meantime, some of Wall Street’s estimates have higher numbers of expectations and said that the company missed forecasts.
The share price of Tesla plunged 6% on the day of announcing its deliveries as investors were not pleased by the report as many believed that an increase in delivery comes after recent price cuts by Tesla that could erode margins. The car producer cut as much as 20% of its price globally in January after missing Wall Street delivery estimates for 2022.