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Tesla Cuts Model 3 Price for the Second Time This Year

  • Move follows the end of a customer referral program on Feb. 1
  • Cost also lowered in January to offset smaller tax credit
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Tesla Inc. is cutting the price of its Model 3 sedan for the second time this year, citing the end of a customer-referral program that was a more costly incentive than the company realized.

All versions of the Model 3 will cost $1,100 less, lowering the starting price of the car to $42,900. The move follows a $2,000 price cut on all Teslas announced in early January to partially offset the reduction in the U.S. federal tax credit its vehicles were eligible for.