Tesla is looking to spark interest in its most expensive models.

In the last several months, prominent electric vehicle manufacturer Tesla has been slashing prices on EVs across the board. The precise reason for these cuts wasn’t divulged by Tesla staff, though analysts hypothesize the reason is to stoke interest in the cars, not only on their own merits, but to potentially take advantage of federal tax credits from the Inflation Reduction Act.

Tesla slashed prices of its more expensive models again https://t.co/wdB2ebcND3

— Bloomberg (@business) March 6, 2023

The latest Tesla offerings to have their costs reduced are two of its most expensive models, Model S and Model X. The Tesla Model S had its price cut by 5%, bringing it down to $89,990. The Model X received a larger 9% cut, bringing it down to $99,990. The improved Plaid versions of both cars are now priced roughly the same at $109,990.

Analysts suspect that EV manufacturers are engaged in a pricing war as they each seek to become the defacto EV brand that consumers will come to, either for cars or tax credits.

“The price cuts Tesla has already implemented globally has catalyzed demand by 30% out of the gates as this latest price cut is another smart move,” Dan Ives, managing director of equities at Wedbush Securities, told CNBC.

Tesla is cutting prices on its two most expensive models in the U.S., the Model S and Model X. https://t.co/CS3XgyNxnV pic.twitter.com/NIkjlEnoaC

— CNBC (@CNBC) March 6, 2023

“This is an EV arms race playing out and Tesla has the margins to make price cuts and still be well above other automakers. In this economic cloudiness Tesla needs to rip the band-aid off and cut prices and the Street will like this.”