This is the second time Tesla has cut the price of its Model 3 sedan this year.

On Wednesday, U.S. electric carmaker Tesla Inc stated, it is lowering the price of its Model 3 by $1,100, due to the end of a customer referral program.

This is the second price cut undertaken by Tesla for the Model 3 this year. After the price cut, the price of its least expensive variant of the Model 3 comes to $42,900.

On February 1, Tesla’s CEO Elon Musk had tweeted that the referral program was “adding too much cost to the cars, especially Model 3”.

Incidentally, Tesla delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States to offset a reduction in a green tax credit.

Tesla is rapidly increasing the production of its Model 3 sedan and lower prices could help broaden its customer base.