Tesla has reduced its Model Y's purchase price by $3,000 so its Long Range AWD will now cost $49,990, said Electrek. The Model Y has only started shipping in March, and Tesla posted better-than-expected production figures for all of its vehicles in the second quarter earlier this month, so the explanation for the price drop is not entirely clear. But at a time when all carmakers are feeling the pinch of economic downturn, it is likely to help boost sales.

In May, Tesla reduced prices on many vehicles but Model Y was not included in those reductions. It lowered the prices of the Model S and Model X base models and performance versions by $5,000 and reduced the prices of all versions of its Model 3 by $2,000 (with slightly different prices for Model 3s sold in China).

Tesla said July 2nd that it shipped 80,050 of its Model Y and Model 3 cars, and 10,600 of its Model S and Model X vehicles, following the partial closure of its Fremont, California factory due to the coronavirus pandemic. That took the total to 90,650 vehicles delivered for the second quarter, better than the 72,000 Wall Street analysts had predicted.

Over the past few months, sales of all vehicles have taken on a dive, with trend forecaster IHS Markit forecasting a 22 percent decline in this year's global auto market. According to Bloomberg New Energy Finance, sales of electric vehicles are projected to decrease by 18 percent. Automotive sales rose slightly — about 3.3 percent — from May to June, according to Edmunds.com, but were down 30 percent from a year ago, CNB

Tesla did not respond to a Sunday request for comment immediately.