Thelife- Tesla cut the prices of its two most expensive cars in its fifth round of reductions this year.
- The Model S and Model X are now $5,000 cheaper, and the Model Y is now $2,000 cheaper.
Tesla has cut prices on two of its most expensive cars in the fifth reduction 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 reduction comes after the US Treasury Department and IRS issued new guidance in March on what EV models can qualify for tax credits of $3,750 or $7,500, with the new rules taking effect 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.