Tesla cuts prices in China for some Model Y versions

The car company dropped the starting prices of both models by 14,000 yuan ($1,934.58). The Model Y Long Range's starting price 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 offer insurance subsidies in China of 8,000 yuan for Model 3 buyers of entry-level, rear-wheel-drive versions of the Model 3 inventory vehicle between Aug. 14 and Sept. 30.

Last month Tesla CEO Elon Musk said further price cuts were a possibility, even if it squeezed the automaker's margins.

Tesla has slashed prices several times in the United States, China and other markets since late last year, and increased discounts and given other incentives to reduce inventory, trying to shield itself against competition and economic uncertainty.

Sales of Tesla's China-made vehicles fell 31% in July from June, data from China Passenger Car Association (CPCA) showed earlier this month, marking its first month-on-month decline since December.