Electric car maker Tesla cut the prices of some of its cars in China, causing the company's shares to fall in pre-market trading on Monday.
According to Arab Net, Tesla shares fell about 3% in New York before the market opened on Monday.
This comes after Tesla lowered the price of its Model 3 and Y cars in China, one of the company's most important markets.
The starting price of the Model 3 has been reduced to 265,900 Chinese yuan (36,615) from 2799,900 yuan, or 5%. The Model Y SUV now costs 288,900 yuan, up from the previous price of 316,900 yuan, CNBC reported.
Tesla's recent price cuts are a partial reflection of some of the price increases the company was forced to implement earlier this year in China and the United States on the back of higher raw material costs.
For his part, Tesla CEO Elon Musk warned in March that his electric car company had recently experienced significant inflation pressure in the cost of raw materials and logistics.
The price cuts also come after Musk said he was seeing signs of recession in China.
On the other hand, Tesla delivered 343,000 vehicles for the quarter ended September 30, missing analyst expectations.
In September, the China Passenger Car Association reported that Tesla had delivered 83,135 Chinese-made electric vehicles, a monthly record for the company. Tesla owns a huge factory in Shanghai, China, and completed its upgrades earlier this year.
However, the price cuts come in the face of increased competition for Tesla in China from local companies such as Warren Buffett's backed BYD, as well as start-ups Nio and Xpeng.
Other electric car makers have raised prices this year, including BYD and Xpeng, as rising raw material costs have weighed on these companies.
