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Tesla is slashing the price of the Model 3, Model S, and Model X by $2,000 in the US

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Tesla is slashing the price of the Model 3, Model S, and Model X by $2,000 in the US

Tesla’s Model 3.

Hollis Johnson/Business Insider

  • Tesla has cut the price of each of its vehicles by $2,000 for US customers, the automaker said in a regulatory filing released on Wednesday.
  • Tesla‘s Model 3 sedan now starts at $44,000 for US customers, while its Model S sedan starts at $76,000 and its Model X SUV starts at $82,000, before federal and state tax credits.
  • The move comes as a federal tax credit for electric-vehicle customers begins to expire for Tesla.

Tesla has cut the price of each of its vehicles by $2,000 for US customers, the automaker said in a regulatory filing released on Wednesday.

The move comes as a federal tax credit for electric-vehicle customers begins to expire for Tesla. As of January 1, Tesla customers are eligible for a $3,750 tax credit, down from $7,500. The reduction was set in motion when Tesla sold its 200,000th vehicle in 2018.

Read more: Tesla delivered slightly fewer Model 3’s than Wall Street expected last quarter

Tesla’s Model 3 sedan now starts at $44,000 for US customers, while its Model S sedan starts at $76,000 and its Model X SUV starts at $82,000, before federal and state tax credits.

The US government gives a tax credit ranging from $2,500 to $7,500 to people who buy electric vehicles, depending on the vehicle’s size and battery capacity. Two calendar quarters after a company sells 200,000 electric vehicles in the US, the tax credit begins to phase out. Tesla confirmed in July that it had passed the 200,000-vehicle threshold. It was the first company to have its credits phased out.

Tesla customers who take delivery between January 1 and June 30, 2019, will receive a $3,750 tax credit and those who take delivery between July 1 and December 31, 2019, will receive $1,875. Customers who take delivery beginning in 2020 will not receive a federal tax credit.

Tesla also announced on Wednesday that it produced (86,555) and delivered (90,700) more vehicles in the fourth quarter of 2018 in any quarter in its history. Its previous record for vehicle production and deliveries came in the third quarter of 2018, when it made 80,142 vehicles and delivered 83,500. Tesla also said it nearly delivered more vehicles in 2018 — 245,240 — than in every prior year combined.

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