In China, Tesla has announced price cuts for its Model Y Long Range and Performance variants. According to a notice from the company, starting prices for both variants in China were reduced by CNY 14,000 (approximately RM 9k).

Specifically, the starting price for the Model Y Long Range has been decreased by 4.5% to CNY 299,900 (around RM 190k), while the Model Y Performance now starts at CNY 349,900 (around RM 222k), reflecting a 3.8% reduction.

This was said to demonstrate Tesla's commitment to making its vehicles more accessible and appealing to potential customers in the competitive Chinese electric vehicle (EV) market.

Tesla also announced that from 14-August until 30-September, buyers of the rear-wheel drive Model 3 in China will be offered insurance subsidies of CNY 8,000 (around RM 5k).

These moves come as Tesla faces challenges in the Chinese market, with recent data from the China Passenger Car Association (CPCA) showing a 31% decline in sales of China-made Tesla vehicles in July compared to the previous month.

This decline marks the first month-on-month drop since December, prompting Tesla to take action to stimulate demand and bolster its sales performance.

Tesla's CEO, Elon Musk, had previously mentioned the possibility of further price cuts, even if it meant impacting the company's profit margins. Tesla has been proactive in adjusting prices, with multiple reductions in the United States, China, and other markets since late last year.

Also read: Tesla Model 3 prices slashed in Thailand by up to 11 percent - Third price cut since Dec 22 launch

The company has also increased discounts and offered other incentives as part of its strategy to manage inventory, defend against competition, and navigate economic uncertainties.

Also read: As Tesla slashes prices in China, Chinese car makers seek refuge in Southeast Asia - to build new plants overseas