Asian Tech Press (Oct 24) -- Tesla Inc. announced price reductions for the Model 3 and Model Y in China.

Tesla on Monday announced on Chinese social media platforms that it is adjusting the starting prices of the Model 3 and Model Y.

According to the electric car maker's latest pricing plan in China, the starting price of the Model 3 was down by 14,000 yuan to 265,900 yuan ($36,640), and the starting price of the Model Y was cut to 288,900 yuan ($39,810) by 28,000 yuan.

Tesla said in a statement that the company has been adjusting prices based on costs, and has reduced costs by improving capacity utilization at its Shanghai megafactory while the supply chain remains stable.

This is the first time Tesla has cut prices in China in 2022. Since earlier this year, Tesla has raised the prices of both models several times due to rising raw material costs.

In addition, Tesla began offering insurance incentives to Chinese buyers in September to encourage more purchases.

However, it is worth noting that at the end of September Tesla denied rumors of price cuts in the Chinese market.

(US$1 = 7.257 yuan)