Tesla Cuts Vehicle Prices in Bid to Boost Flagging Demand

With its sales slowing and its stock price tumbling, Tesla Inc. slashed prices dramatically Jan. 13 on several versions of its electric vehicles, making some of its models eligible for a new federal tax credit that could help spur buyer interest.

The company dropped prices nearly 20% in the United States on some versions of the Model Y SUV, its top seller. That cut will make more versions of the Model Y eligible for a $7,500 electric vehicle tax credit that will be available through March. Tesla also reduced the base price of the Model 3, its least expensive model, by about 6%.

Far from pleasing investors, the sharp price cuts sent Tesla shares down nearly 3% in midday trading Jan. 13. Since the start of last year, the stock has plummeted more than 65%.