Tesla Inc. cut prices across its U.S. lineup late Thursday after reporting first-quarter sales that were sharply higher but failed to meet CEO Elon Musk's internal goal of 50 percent per year for the foreseeable future.
Earlier this week, Tesla reported first-quarter deliveries of 422,875 globally for a 36 percent increase over last year. Tesla doesn't break out U.S. sales, but Cox Automotive estimated first-quarter deliveries at 180,993.
Tesla also said Thursday that its most inexpensive vehicle, the base Model 3 sedan, would lose half of the current $7,500 federal tax incentive later this month when new battery-sourcing rules take effect.
"Based on new IRS guidance, the $7,500 credit will be reduced for Model 3 Rear-Wheel Drive on April 18 to $3,750," the automaker said on its online order page.
On Twitter Friday, Musk said cutting prices was the best way to stimulate sales since affordability is holding back buyers and not demand.
Musk …