tesla inc tsla which sharply cut prices of its madeinchina vehicles at the start of the year has broadened the downward adjustment to the us what happened tesla has drastically cut its model 3 and model y vehicles in the us with the price cuts ranging from 64 to 197 amid a slowdown in demand see also best electric vehicle stocks based on information available on the company’s website the price reductions for the two models and their respective variants are as follows the estimated delivery times are listed as between januaryfebruary for model 3 and januarymarch for model y vehicles tesla also mentions that certain new model 3 and model y vehicles qualify for a federal tax credit of 7500 for deliveries until march 2023 a few days ago tesla lowered the prices of the two models in china by between 57 and 135 although the move triggered a backlash from some recent buyers who missed out on the benefit it stimulated the receipt of strong orders why it’s important the price cuts in the us are steeper than what was announced in china last week the model y lr now becomes eligible for the federal ev tax credit in the us based on the vehicle qualification norms announced by the internal revenue service recently previously the model y lr variant was not eligible as it did not qualify as an suv and its price was above the 55000 ceiling specified by the irs for other vehicles with the tax credit tesla vehicles are cheaper than the reduced prices as pointed out by tesla influencer troy teslike so now after deducting the 7500 tax credit you can own a tesla model 3 in the us for a price as low as 36490 although these price cuts could have the ability to push up the volume they would drag margins the stock reaction when it opens for trading on friday will show whether investors are focused on the topline or will fret over the margin impact of the price cuts when tesla announced the price cuts in china on jan 6 the stock climbed about 25 price action on thursday tesla shares ended up 028 at 12356 according to benzinga pro data read next elon musk wants your help as tesla finally has way to get irs ev qualification norms corrected