Tesla CEO Elon Musk attends an opening ceremony for the made-in-China Tesla Model Y program in Shanghai, east China, Jan 7, 2020.
ding ting | Xinhua News Agency | Getty Images
You’re here Shares fell in premarket trading on Monday after the company cut the price of some of its cars in China.
Shares of the electric car maker were down about 3% in New York before the market opened on Monday.
Tesla has slashed the price of its Model 3 and Model Y vehicles in China, one of the company’s most critical markets.
The Model 3 sedan’s starting price has been reduced to 265,900 Chinese yuan ($36,615) from 279,900 yuan. The Model Y sport utility vehicle now costs 288,900 yuan from 316,900 yuan previously.
Tesla’s price cuts partially reverse some of the price increases the company was forced to make earlier this year in China and the United States due to rising raw material costs.
Tesla CEO Elon Musk warned in March that his electric car business was “seeing significant recent inflationary pressure in raw materials and logistics.”
The price cuts also come after Musk said he saw elements of a recession in China.
“China is in a bit of a recession,” mostly in property markets, Musk said last week.