Tesla slashes prices, making cars eligible for big tax break

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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. 

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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.

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 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. 123.56 +0.34 +0.28%

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.