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Tesla cuts vehicle prices in bid to boost flagging demand

Tesla Price Cuts
Posted at 11:15 AM, Jan 13, 2023
and last updated 2023-01-13 11:15:39-05

DETROIT (AP) — With its sales slowing and its stock price tumbling, Tesla Inc. slashed prices dramatically on several versions of its electric vehicles, making some of its models eligible for a new federal tax credit that could help spur buyer interest.

The company dropped prices nearly 20% in the United States on some versions of the Model Y SUV, its top seller.

That cut will make more versions of the Model Y eligible for a $7,500 U.S. electric vehicle tax credit that will be available through March.

It also reduced the base price of the Model 3, its least expensive model, by about 6%.

Far from pleasing investors, the sharp price cuts sent Tesla shares sinking in early trading.