Tesla shares drop after company announces China price cuts

Tesla has erstwhile again chopped prices successful mainland China, a competitory determination that sent shares sliding 3% successful pre-market trading Monday.

The automaker announced the moves successful a Weibo station precocious Sunday evening. Two Chinese versions of Tesla's Model Y crossover, priced astatine 299,000 and 349,000 yuan, person been discounted by 14,000 yuan, oregon astir $2,000.

The Model 3 volition besides person a "limited-time security subsidy" of 8,000 yuan, oregon astir $1,100 U.S dollars. The security subsidy volition past until September 2023, according to Tesla's post.

A ferocious terms warfare betwixt Tesla and home Chinese automakers similar BYD, Nio and Xpeng ate into Tesla's margins successful the second 4th of 2023. Tesla has mislaid crushed to home competitors, adjacent arsenic it ramps up accumulation successful its Shanghai Gigafactory.

Tesla chopped prices aggregate times done retired 2022 and 2023, successful an effort to wide retired inventory and turn deliveries, the closest approximation the institution offers to sales.

CNBC's Hakyung Kim contributed to this report.