Prices at Elon Musk's faltering EV startup are dropping yet again. Struggling to create demand in a market saturated with their CEO's gaffes and foibles, Tesla does not signal strength with its sixth price decrease this year. The price cuts will lead to further margin erosion as the automaker prepares to report earnings this week.
Tesla, which is due to report January-March quarter results on Wednesday, cut the prices of its Model Y "long range" and "performance" vehicles by $3,000 each and that of its Model 3 "rear-wheel drive" by $2,000 to $39,990.
The Elon Musk-led company has cut U.S. prices of its base Model 3 by 11% so far this year and that of its base Model Y by 20% — moves that come as the United States, its largest market, prepares to introduce tougher standards that will limit EV tax credits.
The company also recently lowered prices in Europe, Israel and Singapore as well as in Japan, Australia and South Korea, expanding a discount drive it started in China in January to spur demand.