Elon Musk’s Tesla (NASDAQ:TSLA) has cut the prices of its electric cars in the U.S. and European markets, expanding its discounting strategy, Reuters writes.

The price cuts for electric cars in the U.S. for the Model 3 sedan and Model Y crossover range from 6% to 20% compared to prices before discounting and before accounting for a federal tax credit of up to $7500 that went into effect for many electric vehicle models in early January. The Model X crossover and Model S sedan in the U.S. also got cheaper.

In Germany, Tesla has reduced prices for the Model 3 and Model Y by about 1% and almost 17% depending on the configuration, in addition, they have fallen in price in Austria, Switzerland and France.

For the American buyer of the Model Y, Tesla’s new price combined with the subsidy, which came into effect in January, has dropped thanks to a 31% discount.

Prior to the price cut, the 5-seat version of the Model Y was not eligible for the credit. After the price cut, the Model Y version will be eligible for the $7500 federal credit.

Along with price cuts in China and other Asian markets, this was a departure in the company’s policy that it had followed for most of 2022, when demand was strong and average electric vehicle prices were trending upward. Along with previous price cuts announced in October and recent incentives, the price of a Model 3 or Model Y in China is down 13-24% from September. Tesla has also cut prices in South Korea, Japan, Australia and Singapore.

In addition, prices of used Tesla models have also fallen, adding pressure on the company to adjust prices for new cars.