Tesla cut prices in the United States between 2% and almost 6%, according to its website reflected this Thursday. This is because the company extended a discount campaign for its electric vehicles that analysts warn could hurt its profitability.
Tesla’s fifth such cut in the market since the start of the year comes as the United States prepares to adopt tougher standards this month that are expected to cap tax credits for electric vehicles.
Tesla cut prices on both versions of its Model 3 sedan by $1,000 and its Model Y crossover by $2,000, according to its website. It also slashed the prices of both its more expensive Model S and Model X versions by $5,000.
The company said the tougher US standards would reduce the $7,500 tax credit available for its base, rear-wheel-drive Model 3 that has been in effect since January.
Some analysts who had expected more price cuts had raised concerns that Tesla’s industry-record profit margins could be at risk.