Tesla has continued to reduce prices, this time by as much as 20%

In an effort to boost demand, Tesla has once again reduced the price of its EVs, this time only for American customers.

This is at least the fourth occasion in recent months that the automaker has issued credits or discounts on its cars. When Tesla announced price discounts of up to 9% on the Model 3 and Model Y in China in October, the trend toward price reductions was officially launched. Tesla again cut costs for Chinese customers earlier this month, this time by about 14%.

The business has also attempted to attract American and Canadian customers by lowering prices. Early in December, Tesla offered American customers a $3,750 credit toward a Model Y or Model 3 if they took delivery of their car in December 2022. According to the corporate website, the carmaker increased the discount to $7,500 in the final week of the year.

Tesla has once more focused on the American market. On Thursday, the business updated its website with new prices for customers in the United States. The starting price of the long-range Model Y crossover was decreased by about 20% to $52,990 (excluding costs).

The $7,500 federal tax benefit can be claimed by customers thanks to the new, lower base price, which is significant. According to new guidelines created by the Inflation Reduction Act, which was signed into law in August, only EVs priced below $55,000 are eligible for the tax credit.

Additionally, Tesla lowered the cost of its powerful Model 3 sedan by 14% to $53,990. The Model S sedan and Model X, two of Tesla’s most expensive and earliest models, are also less expensive. Even yet, the two cars are still significantly more than the $55,000 ceiling.

The price cuts come as Tesla faces more competition from established automakers, newer companies, and, in China, industry behemoths like BYD.