According to the information posted on Tesla’s website on Thursday, the business reduced prices for its electric vehicles in the United States by 2% to almost 6%. Analysts warn that this pricing campaign could affect the company’s profitability.

The United States is getting ready to adopt stricter requirements that are anticipated to limit EV tax credits this month, and the fifth such cut in Tesla’s (NASDAQ:TSLA) largest market since the year’s beginning.

According to the website, the price reductions were $1,000 for both versions of the Model 3 sedan and $2,000 for the Model Y crossover. Additionally, a $5,000 price reduction was made to both of its more expensive Model S and Model X models.

Since January, the firm has stated that the $7,500 tax credit offered for its base, rear-wheel drive Model 3 will be reduced due to the stricter U.S. regulations.

Analysts who anticipated additional price reductions had expressed concern that Tesla’s industry-best profit margins would be in jeopardy.

This week, Tesla reported first-quarter deliveries of about 423,000 vehicles, an increase of just 4% from the previous quarter despite price reductions in the US, China, and other places meant to boost demand.

Tesla has set a target of 1.8 million deliveries this year.

Since the beginning of the year, Tesla has reduced the cost of its base Model 3 by a total of 11%, while also offering a 20% discount on its base Model Y.