Tesla has slashed the prices of its Model 3 sedan and Model Y SUV between 6% and 20% in the US, as it reverses strategy after demand tapers

• Tesla has slashed the prices of its Model 3 sedan and Model Y SUV between 6% and 20% in the US.

• The EV maker also slashed prices in Europe — including Germany and France.

• The price cuts are a reversal from 2022, when Tesla hiked prices several times amid supply chain disruptions.

Tesla buyers in the US and part of Europe can now rejoice — the electric vehicle, or EV, is now cheaper by up to one-fifth of its cost.

The price cut mirrors those in other markets, after the EV maker missed market expectations for deliveries in the fourth quarter.

Prices of the Model 3 sedan and Model Y SUV were slashed on Thursday. The discounts range from 6% to 20%, per Reuters' calculations.

The price of a dual motor all-wheel drive Model 3 is now $53,990 in the US — 14% cheaper than the previous price tag of $62,990. Meanwhile, the long range Model Y now costs $52,990 — a 20% price cut from its sticker price of $65,990 previously.

The prices are before a $7,500 tax credit on new EVs that is part of the Biden administration's Inflation Reduction Act, passed in August last year.

Tesla also slashed EV prices in the European markets like Germany, Austria, Switzerland, and France, per Reuters. The price cuts for the the Model 3 and Model Y in Germany range between 1% to 17%, the news agency reported.