Tesla cuts the price of electric cars for the second time since the start of April - Model 3 already costs less than $40,000

Tesla continues to reduce the cost of electric vehicles. The company hopes to sell 1.8-2 million vehicles within a year, and without price adjustments, that won't be easy.

Here's What We Know

The Tesla Model Y electric crossover has dropped in price by $3,000. The Long Range version with a range of 528km now costs $49,990. The Performance variant will cost $53,990. The base version is priced at $46,990.

All three Model Y variants are covered by the subsidy programme. With additional bonuses, the base version of the electric crossover can be obtained for $35,000 in some states.

The Tesla Model 3 sedan has dropped in price by $2,000. The price adjustment is because buyers can only claim half of the federal tax credit, i.e. $3750 instead of $7500. This is due to the use of batteries that are made in China. The standard Model 3 now costs $39,990.

Source: Tesla