For the long-range and performance variants of the Model Y, Tesla Inc. has reduced pricing in China, the firm announced in a notification on Monday.

Both models' beginning pricing were reduced by 14,000 yuan ($1,934.58) by the automobile manufacturer. The beginning price of the Model Y Long Range is now 299,900 yuan, down 4.5%, while the Model Y Performance is now 349,900 yuan, down 3.8%.

In the same release, Tesla also stated that between August 14 and September 30, customers of entry-level, rear-wheel-drive Model 3 inventory vehicles will be eligible for insurance subsidies in China in the amount of 8,000 yuan.

Elon Musk, CEO of Tesla, stated last month that more price reductions may be made, even though doing so would reduce the company's profit margins.

Since late last year, Tesla has reduced prices many times in the US, China, and other regions. It has also raised discounts and provided other incentives to decrease inventory in an effort to face off rivals and uncertain economic conditions.

According to data released earlier this month by the China Passenger Car Association (CPCA), sales of Tesla vehicles built in China dropped 31% in July compared to June. This was the first month-over-month drop since December.