Electric vehicle maker Tesla reduced prices for its Model Y vehicles in China on August 14th, according to a company announcement.
The starting price of the Model Y Long Range was lowered 4.5% to 299,900 yuan ($1,934.58), while the Performance trim was reduced 3.8% to 349,900 yuan.
Additionally, Tesla said it would provide insurance subsidies of 8,000 yuan for purchases of the entry-level Model 3 made between August 14th and September 30th.
Tesla CEO Elon Musk previously signaled more price cuts were possible to offset competitive pressures and economic uncertainty, even if it squeezed margins.
The latest move comes after Tesla cut prices multiple times globally since late 2021 and increased discounts to reduce inventory levels.
Sales of Tesla's China-made cars fell 31% month-on-month in July based on industry data, representing the first decline since December as market conditions weaken.
The price adjustments indicate Tesla's continued efforts to boost demand in China amid rising competition in the electric vehicle sector.
