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Another day, another round of Tesla price cuts.

Shortly after introducing a RWD variant of the Model Y, which after federal EV tax credit is the cheapest variant of that car we've seen in the U.S., Tesla has reduced the prices of its other Model 3 and Model Y variants.

The Tesla Model 3 now starts at $38,990, down $1,250 from the previous price of $40,240. That's for the RWD version; the Long Range variant is now $45,990, down from $47,240, while the Model 3 Performance costs $50,990, down from $53,240.

The RWD Model Y hasn't changed its price; it still starts at $43,990. But the Long Range and the Performance variants have gotten cheaper. A Tesla Model Y LR will now set you back $48,490, down from $50,490, while the Model Y P costs $52,490, down from $54,490.

Both cars qualify for the federal tax credit, and potentially for state incentives as well, meaning they can be had for a lot cheaper too, depending on where you live.

It's worth noting that Tesla CEO Elon Musk originally promised the Model 3 would be a $35,000 car. There was a version that actually delivered on that promise, but it was short-lived and hard to get. Now, with the tax incentives, you can actually get the Model 3 for less than $30,000.

• Tesla launches its cheapest ever Model Y in the U.S.
• Tesla launches new Model Y in China, but it's not what you think
• Tesla dropped the prices of its Model S and X EVs
• Tesla launches new Model 3. Here's what's new.
• Tesla now lets you control your car with Apple Shortcuts

The price cuts aren't massive, but they're notable because Tesla has already made its cars more affordable several times this year. With this latest move, the company is likely making the competition very uncomfortable. The Model 3 and Model Y sit atop the best-selling EV car lists in the U.S., and the company recently said it delivered 419,074 Model 3 and Y vehicles in the third quarter of 2023, a 29 percent year-over-year increase.

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