Tesla has reduced the prices of its Model 3 and Model Y vehicles in response to slower sales in the third quarter.

Tesla has reduced the prices of its Model 3 and Model Y vehicles in response to slower sales in the third quarter.

The electric vehicle leader reduced the prices by $1,250 for the Model 3 base and Long Range versions, and by $2,250 for the Model 3 Performance. Both the Model Y Long Range and Performance versions saw a reduction of $2,000.

Following a decrease in sales in the third quarter compared to the previous quarter, Tesla has taken the unusual step of lowering prices - a rare setback for the electric vehicle leader.

In the United States, Tesla has reduced the prices of all three trim levels of its most affordable vehicle, the Model 3 sedan, according to pricing on its website late Thursday. Prices for the popular Model Y were reduced on the mid-level Long Range and top-end Performance trim levels.

Tesla CEO Elon Musk has stated multiple times this year that he is willing to forgo profits for higher sales volume and that Tesla intends to use its pricing power to balance supply and demand.

The base Model 3 and Long Range variants have received a discount of $1,250. The base model now starts at $40,630 with shipping, and the Long Range model starts at $47,630 with shipping. The Model 3 Performance trim level, with a price cut of $2,250, starts at $52,630 with shipping.

Tesla reduced the Model Y Long Range by $2,000, which now starts at $50,130 with shipping, and the Performance trim level, which starts at $54,130 with shipping.

 

-------This article is partly excerpted from CNBC.

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