Tesla Drops Model 3, Model Y Prices on Eve of Quarterly Earnings

Tesla Inc. has cut the price of several of its models yet again in a further sign Chief Executive Officer Elon Musk is willing to sacrifice the electric carmaker’s profitability in the face of rising interest rates that may dent consumer demand.

(Bloomberg) — Tesla Inc. has cut the price of several of its models yet again in a further sign Chief Executive Officer Elon Musk is willing to sacrifice the electric carmaker’s profitability in the face of rising interest rates that may dent consumer demand.

The Austin, Texas-based automaker said on its website that the price of its Model Y long-range all-wheel drive model will decrease by 9.1% to $49,990 while the price of the Model Y performance will drop by 8.5% to $53,990. 

The cost of a Model 3 rear-wheel drive will be cut by 7% to $39,990.

Tesla is due to report first-quarter earnings on Wednesday in the US.

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