Tesla Inc. TSLA, +3.45% has cut the prices of some of its vehicles in China, according to reports Monday. Reuters reported that Tesla reduced starting prices for the Model 3 and Model Y by as much as 9% in the country. Bloomberg News highlighted that the price of the basic Model 3 fell to 265,000 yuan from 279,900 yuan, while the price of the starting Model Y was cut to 288,900 yuan from 316,900 yuan. The Model 3 change represents a roughly 5% price cut and the Model Y change constitutes a price reduction of almost 9%. Both reports cite information from Tesla’s China website. Tesla shares are off 3.5% in premarket trading Monday. Some analysts highlighted leading up to and after Tesla’s latest earnings report that vehicle purchasers in China appear to be seeing shorter wait times than before. There is also some concern among analysts about China’s competitive landscape and what it means for Tesla. “The China EV market is exploding with choice, and new upstarts are taking share from traditional incumbents, including Tesla,” Bernstein analyst Toni Sacconaghi wrote last week.
