TeslaInc TSLA shares are trading lower Monday morning after the Elon Musk-led company cut the prices of two of its vehicle models in China.
Tesla has lowered thestarting prices for its Model 3 and Model Y vehicles in China. TheModel3 sedan was reduced to 265,900yuan ($36,612) from 279,900 yuan. The Model Y SUVnow costs 288,900 yuan($39,779), which is down fromthe previous price of 316,900 yuan.
Tesla raised vehicleprices in China, as well as in the U.S.,earlier this year due to rising material costs, but this is Tesla'sfirst price cut in China this year.
Related Link:Tesla Slashes China EV Prices By 5% To Push Up Volume, Base Model Y Now Eligible For Subsidies But There's A Flip Side
The price cutscome shortly after Musk said he was seeingelements of a potentialrecession in China.
"China is experiencing a recession of sorts," Musk said during the company's earnings call last week.
Tesla hasfaced disruptions in China twice this year.ACOVID-19 resurgence causeda production haltin April. The company's Chinafactory was also shut down for upgrades in July.China vehicle sales reboundedin August and September.
Related Link:Elon Musk Says US In 'Pretty Good Health' But China, Europe Experiencing Recession 'Of Sorts'
TSLA Price Action:Tesla has a 52-week high of $402.66 and a 52-week low of $202.
The stock was down 2.9% at $208.23 at time of publication, according toBenzinga Pro.
Photo: courtesy of Tesla.