Beijing — Tesla cut the starting price of the Model 3 sedan in the US weeks after a federal tax credit shrank by half, renewing concern over whether the electric-car maker can sustain sales with less support from incentives.

The Model 3 now starts at $38,990, according to Tesla’s website. Arndt Ellinghorst, an analyst at Evercore ISI, wrote in a report on Tuesday that the halving of the US tax credit to $1,875 at the beginning of July was causing the company to reduce prices to support demand.

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