San Francisco, Jan 13 (IANS): Elon Musk-owned Tesla has drastically lowered prices of EVs across its lineup in the US and Europe, in an effort to boost sales as its stock plummeted more than 60 per cent.

The least expensive EV, the Model 3 RWD, has dropped from $46,990 to $43,990, reports Engadget.

Moreover, the 5-seat Model Y Long Range's price decreased 20 per cent from $65,990 to $52,990.

As a result, the latter model is now eligible for the $7,500 US Federal Tax Credit, resulting in a final price reduction of $20,500 which is more than 30 per cent.

Price reductions were made to other models too, including the performance versions of the Model 3 and Model Y, and the regular and plaid versions of the Model S and Model X.

However, the Model Y's 7-seat option has increased in price by $1,000 to $4,000.

In Germany, Model 3 and Model Y prices were decreased by one to 17 per cent and also dropped in Austria, Switzerland and France.

Customers must place their orders before mid-March, when it is expected that the rebate would be reduced to half, in order to receive the full $7,500.

SUVs priced below $80,000 and cars priced under $55,000 are eligible for tax rebates, the report said.

Meanwhile,A the electric car-maker has missed its target of 50 per cent growth in production and deliveries for 2022, as its stock plummeted around 65 per cent amid Musk's $44 billion Twitter takeover last year.

The automaker needed to sell 495,760 vehicles in its fourth quarter (Q4) to have achieved the 50 per cent growth guidance.

In the fourth quarter, Tesla produced over 439,000 vehicles and delivered over 405,000 vehicles.

Investors fear that China's Covid situation and supply chain-related challenges will further impact Tesla sales. They are also concerned about Musk's distraction by his Twitter overhaul.

The Tesla CEO recently became the first person ever to lose $200 billion from his net worth.

Tesla last month announced a price drop on several of its models, offering a $7,500 discount for its Model 3 and Model Y vehicles, in a bid to sell more vehicles.