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April 19 (UPI) -- Tesla cut prices for its electric vehicles in the United States for the second time in April, slashing the price of its Model Y sports utility vehicle and base Model 3. The price cuts, which sent Tesla shares tumbling, come on the heels of the company falling shy of promised deliveries for several quarters. Tesla cut the price of its Model Y by $3,000 and the Model 3 by 4.7% to make it less than $40,000.
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Tesla stock was down 2.9% as of 9 a.m. EDT following the move.
The price of the company's base Model Y is 29% cheaper than it was at the start of 2023, while the Model 3 has dropped 15% in price following the series of cuts.
The company initially cut prices on the Model 3 and Model Y in January, which also caused a drop in shares in the immediate aftermath.
The price cuts, though, did spark buying in the first quarter to 422,875 for Tesla while also driving down its margins from 32.9% in 2022 to 23.3% currently, according to Visible Alpha.
Ford followed Tesla's move to lower prices later in January as it said it sought to "remain competitive in the marketplace."
Tesla's founder Elon Musk sought to dispel suggestions on Twitter over the weekend that Tesla was looking to force its competitors to lower their prices.
"We're not 'starting a price war,'" he said. "We're just lowering prices to enable affordability at scale."
