Tesla, Inc. TSLA announced another round of price cuts late Thursday as volume hasnt yet responded significantly to the previously announced reductions.

What Happened: Updated pricing available on Teslas U.S. website showed a $1,000 price cut each for the two Model 3 variants and reductions ranging from 3.4% and 5.6% for the rest of the models. The company listed a new cheaper Model Y variant priced a little under $50,000. The Elon Musk-led company also clarified that the new Model 3 and Model Y vehicles qualify for the federal tax credit for eligible buyers.

Based on the new IRS guidance, the $7,500 credit will be reduced for Model 3 RWD variant to $3,750, on April 18, it added.

The new pricing and changes for the various models and variants are as follows:

Model 3

Rear-wheel drive, or RWD Model 3: $41,990, down 2.33% from $42,990
Dual motor, all-wheel drive, or AWD, Model 3 Performance: $52,990, down 1.85% from $53,990

Model Y

Dual-motor, AWD Model Y: $49,990
Dual-motor, AWD Model Y Long Range: $52,990, down 3.64% from $54,990
Dual motor, AWD Model Y Performance: $56,990, down 3.39% from $58,990

Model S

Dual-motor AWD Model S: $84,990, down 5.56% from $89,990
Tri-motor, AWD Model S Plaid: $104,990, down 4.55% from $109,990

Model X

Dual-motor AWD Model X: $94,990, down 5% from $99,990
Tri-motor, AWD Model X Plaid: $104,990, down 4.55% from $109,990

The Model 3, Y pricing listed does not reflect the $7,500 credit due to them.

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Why Its Important: The steep price cuts of up to 19.7% announced in mid-January and another tinkering for the high-end models announced in March did help boost volume amid an inclement economic environment and also intensifying competitive pressure.

But the benefits have been muted. The first-quarter deliveries report that was released earlier this month showed roughly in-line to slightly below performance, triggering a sell-off in the shares. The sales of the higher-end vehicles, the Model S and X remained anemic.

Morgan Stanley analyst Adam Jonas said in a recent report that Tesla can hit an annual deliveries number of 2 million units but it could come only with further price reductions. The price cuts, although healthy for volume, have the potential to pinch the margin.

More details on the margin impact of the price cuts would be known when Tesla reports its first-quarter results on April 19.

Meanwhile, Teslas price cuts could mean more headaches for its rivals, both legacy automakers and EV startups. These companies may be forced to announce price reductions of their own or risk a loss in sales and market share.

Tesla closed Thursdays session at $185.06, down 0.25%, according to Benzinga Pro data.

Check out more of Benzinga's Future Of Mobility coverage byfollowing this link.

Read Next:Tesla Officially Names Tom Zhu Global Head Of Automotive Business; Analyst Says 'All Falling Into Place'

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