DETROIT (AP) — Tesla says it delivered over 245,000 electric cars and SUVs last year, nearly as many as all previous years combined.

The company also says it’s cutting prices of its three vehicles by $2,000 to help customers handle the gradual phase-out of federal electric vehicle tax credits. On Jan. 1 the federal credit for Tesla buyers dropped from $7,500 to $3,750. It will gradually be phased out this year.

The company’s sales included almost 146,000 Model 3 lower-priced cars and another 99,000 of the more expensive Model S sedan and Model X SUV. The Model 3 starts at $35,000 but still can’t be purchased for under $45,000.

The company says it made nearly 87,000 vehicles in the fourth quarter, 8 percent above its previous quarterly record set in the third quarter.