Tesla cuts prices in China for Model 3, Model Y by up to 13.5%

Tesla

Tesla cut prices for all versions of its Model 3 and Model Y vehicles in China by up to 13.5%, according to its Chinese website on Friday, after its December deliveries of China-made cars fell to the lowest point in five months.

The U.S. automaker reduced the prices for the models by 6% to 13.5%, according to Reuters calculations based on the prices shown on the website.

The starting price for Model 3 was cut to 229,900 yuan ($33,427.84) from 265,900 yuan, and for Model Y was lowered to 259,900 yuan from 288,900 yuan, the website showed.

The move followed a price reduction in October when Tesla cut the prices for those models by up to 9%. The company has been offering incentives as much as 10,000 yuan to Chinese buyers since September.

China's decision to end a more than decade-long subsidy for electric vehicle purchases has also forced automakers, including Tesla, to deepen discounts to maintain sales as demand eases in the world's largest market.

Tesla delivered 55,796 China-made electric vehicles in December, marking a 44% drop from November and 21% fewer than a year ago, according to data from the China Passenger Car Association (CPCA) on Thursday, as it reduced output and cut prices to deal with rising inventories.