In a strategic move, Tesla (NASDAQ:TSLA) has reduced prices for its Model Y long-range and performance versions in China. The company announced on Monday that both models' starting prices have been cut by 14,000 yuan ($1,934.58). The Model Y Long Range now starts at 299,900 yuan, down 4.5%, while the Model Y Performance starts at 349,900 yuan, down 3.8%.
In addition to the price cuts, Tesla is providing insurance subsidies of 8,000 yuan for Model 3 entry-level, rear-wheel-drive versions in China from August 14 to September 30.
Following this announcement, Tesla's shares dipped by nearly 2% in U.S. premarket trade.
CEO Elon Musk had previously hinted at the possibility of price adjustments, emphasizing the company's focus on competitiveness.
Tesla's series of price reductions and added incentives in various markets, including China and the U.S., aims to navigate competition and economic uncertainties effectively.
Recent data from the China Passenger Car Association revealed a 31% sales decline for Tesla's China-made vehicles in July compared to June, highlighting the challenges in the Chinese electric vehicle market.
