Tesla has cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, reversing a trend of increases across the industry amid signs of softening demand in the world's largest auto market.
The price cuts, posted in listings on the electric vehicle (EV) giant's China website on Monday, are the first by Tesla in China in 2022, and come after Tesla began offering limited incentives to buyers who opted for its insurance last month.
The price cuts also follows Tesla Chief Executive Elon Musk's comment last week that "a recession of sorts" was under way in China and Europe, and Tesla said it would miss its vehicle delivery target this year.
China Merchants Bank International (CMBI) said Tesla's price cuts underlined the growing competitive risk for EV makers in China, with industry-wide sales projected to slow into 2023.
Tesla had cut prices in China last year in an effort to be more competitive in the country, while in the United States, its largest market, the EV maker has raised prices over the past year on higher cost of raw materials.
