Tesla (TSLA) shares lost ground in early trading on Friday after it slashed prices on it🌸s Model 3 and Model Y vehicles in the💯 U.S. to boost demand.

The EV maker cut prices by about 2.7% to 4.2%, lowering the cost of its Model 3 rear-wheel drive to $38,990 from $40,240. The Model Y Performance SUV now starts at $52,490, down from $54,490.

The latest round of price cuts comes after Tesla reported lower third-quarter d🦩eliveries than expected due to planned downtime at its factories, with upgrades to its plants in preparation for the redesigned Model 3 sedan and the Cybertruck contributing to production interruptions. Tesla delivered 435,059 electric vehicles in the third quarter, down from 466,140 in the previous quarter.

Tesla shares were 2.4% lower in early trading as of 9:36 a.m. ET on Friday following the news, though they were still up over 130% year-to-date.