Tesla trimmed the prices of some of its electric vehicles (EVs) for the sixth time this year in the US on Wednesday, pushing its stock down over 3% in premarket trading. The reductions come several days after Tesla slashed the prices of all EVs in the US.

Tesla Cuts Model Y and Model 3 Prices Again

Tesla’s shares are down more than 3% ahead of the Wednesday market open after the electric carmaker slashed prices for some of its Model Y and Model 3 vehicles again in the US. The move marks the sixth price cut by Tesla this year as part of its efforts to drive demand while hurting profit margins.

According to Tesla’s official website, the company trimmed the prices of its Model Y ‘long range’ and ‘performance’ versions by $3000. In addition, its Model 3 ‘rear-wheel drive’ cost was reduced by $2,000 to $39,990. This is the second time Tesla has reduced car prices this month after delivering sweeping cuts last week on all EVs in the US.

Elon Musk’s car company lowered US prices of its base Model 3 and Model Y cars this year by 11% and 20%, respectively. The reductions come as the US prepares to impose stricter standards restricting EV tax credits.

The world’s biggest automaker also recently reduced car prices in other markets, including Europe, Singapore, Israel, Japan, Australia, and South Korea. The company began its price-cutting drive in January.

Tesla is Due to Report Q1 Earnings on Wednesday

Tesla’s latest price cuts were imposed ahead of its Q1 earnings report, which came out later on Wednesday. Analysts expect the EV maker to report Q1 earnings of 85 cents per share, implying a nearly 20% drop from last year’s quarter. Revenue is expected to rise 26% year-over-year to $23.73 billion.

Morgan Stanley analyst Adam Jones said on Monday that Tesla “should be able to eke out a decent 1Q result.” There’s a feeling that “Tesla earnings expectations are at a crossroads,” Jonas added, and it remains to be seen whether investors will “see the industrial logic (masterstroke?) of leading the industry in price cuts rather than following it?”

The stock price decline in the Wednesday premarket was also seen in other electric carmakers’ stocks, including Rivian (-2%) and Lucid (-1.5%). Despite today’s drop, Tesla’s shares remain up more than 70% since the start of the year after posting its worst annual drop in 2022.

This article originally appeared on The Tokenist

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