Tesla reduced the prices of its Model 3 and Model Y vehicles in the U.S. by around 2.7% to 4.2%, according to the electric vehicle (EV) maker’s website on Thursday, following a similar move for its premium Model S and Model X cars about a month ago.
Tesla has been lowering prices aggressively this year to offset the impact of a slowing EV market, while competing with new entrants and established players.
The Model 3 sedan now costs $1,250 less at $38,990, while the Model Y long-range variant is $2,000 cheaper at $48,490, the car company’s website showed.
Prices for the standard Model 3 have dropped by about 17% since the start of the year while the Model Y long-range variant has seen a decrease of over 26%.
The price cuts for the Model 3 also coincide with the expected delivery of its refreshed and more expensive standard version in the fourth quarter.
The carmaker fell short of market expectations for third-quarter deliveries earlier this week after planned upgrades at its factories to produce the newer version of the Model 3 mass-market sedan caused production stops.
Tesla on Thursday also lowered prices for its more expensive variants of Model Y and Model 3.
The price for the base Model Y rear-wheel drive, which Tesla brought back earlier this week, remained unchanged at $43,990.
Prices for the premium Model S and Model X did not change on Thursday.