Tesla faces the unenviable position of either raising prices at the risk of losing customers or slash prices by thousands of dollars per vehicle, with the electric vehicle tax break starting to being phase out from earlier this month.

Just days after saying saying it would cut jobs, Tesla Inc said, it is reducing the production hours for the Model S and Model X cars, as it pushes to produce more of its more affordable Model 3 sedan.

Tesla also faces the unenviable position of either raising prices at the risk of losing customers or slash prices by thousands of dollars per vehicle, with the electric vehicle tax break starting to being phase out from earlier this month.

Earlier this month, Tesla’s CEO Elon stated, Tesla will no longer be taking orders for the 75 kWh version of the Model S and X to streamline production.

“As a result of this change and because of improving efficiencies in our production lines, we have reduced Model S and X production hours accordingly,” said spokesperson for Tesla. “These changes, along with continuing improvements, give us the flexibility to increase our production capacity in the future as needed.”

Tesla has said, it will provide more details on the earnings call scheduled for next Wednesday.

From January 1, 2019 the reduction in tax credit has added $3,750 to the price of Tesla’s electric cars.