Tesla cuts prices on models sold in the US: report

Tesla cut prices on models in China a week ago after sales in that country plunged in December

Tesla's recent round of price cuts now involves vehicles sold in the U.S.

The electric automaker has reportedly cut prices on some models by nearly 20%, according to the Wall Street Journal.

The move is seen as a way to grab new buyers at a time Wall Street is concerned appetite for the vehicles is weakening.

The cuts are likely to allow some buyers to qualify for a $7,500 U.S. government tax credit. 

TESLA CUTS PRICES IN CHINA AMID SLUMP IN DELIVERIES

Elon Musk Tesla

Tesla CEO Elon Musk alongside the electric automaker's logo. (Getty Images/AP / Getty Images)

Elon Musk's car company slashed the price of its baseline Model Y crossover by almost 20% to $52,990. That puts the vehicle below a $55,000 cap, making it eligible for the tax incentive.

A 14% cut brings the price of a high-performance version of its Model 3 sedan to $53,990, also putting it under the cap.

The Model 3 and Model Y are Tesla’s bestselling vehicles.

Tesla Model 3

A Tesla Model 3 is seen in a showroom in Los Angeles, California. (REUTERS/Lucy Nicholson / Reuters Photos)

The company also lowered prices for its Model S luxury sedans and Model X sport-utility vehicles. 

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A customer browses Tesla automobiles

A Tesla Model 3 sedans and Tesla Model X sport utility vehicle at a new Tesla showroom. (REUTERS/Yilei Sun / Reuters Photos)

FOX Business has reached out to Tesla for comment.

Tesla cut prices on vehicles in China a week ago, after sales there plunged in December.

Ticker Security Last Change Change %
TSLA TESLA INC. 179.24 +5.50 +3.17%

Musk suggested last month that the higher interest-rate environment was hurting demand.

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Tesla delivered about 1.31 million vehicles last year, up roughly 40% from 2021, but short of the company's target of 50% or more. 

Shares of Tesla fell about 65% in 2022.