Tesla lowers prices in China for some versions of the Model Y.

The logo of automaker Tesla is seen at a branch office in Bern, Switzerland, October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

BEIJING (Reuters) – Tesla Inc (TSLA.O) said in a notice Monday that the company has lowered prices in China for its long-range and performance versions of the Model Y as of August 14.

The automaker lowered the initial prices of both models by 14,000 yuan (1,934.58 US dollars). The starting price of the Model Y Long Range drops 4.5% to 299,900 yuan, and the starting price of the Model Y Performance is now 349,900 yuan, down 3.8%.

In the same announcement, Tesla also said it would provide insurance support in China worth 8,000 yuan for Model 3 buyers of rear-wheel-drive and entry-level versions of the Model 3 stock vehicle between August 14 and September 30.

Last month, Elon Musk, CEO of Tesla, said more price cuts are possible, even if it shrinks the company’s profit margins.

Tesla has lowered prices several times in the United States, China and other markets since late last year, increased discounts and provided other incentives to reduce inventory, in an effort to protect itself from competition and economic uncertainty.

Data released by the China Passenger Car Association (CPCA) earlier this month showed that sales of Chinese-made Tesla cars fell 31% in July compared to June, marking their first month-on-month decline since December.

($1 = 7.2367 yuan)

coverage from Shanghai Newsroom and Liz Lee; Editing by Christian Schmollinger and Tom Hogg

Our standards: Thomson Reuters Trust Principles.

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