Tesla (TSLA) has moved to tackle slowing electric vehicle sales and growing competition with a series of price incentives in China, while it also raised Model Y prices in the United States.

Chinese consumers buying a rear-wheel drive Model 3 sedan or a Model Y SUV can qualify for an insurance subsidy of up to 8,000 yuan ($1,100). Tesla will also provide financing plans with discounts on optional paint colors. Although it is not an official price cut, the subsidy will lower the starting price of the two cars to 237,900 yuan ($33,000) and 250,000 yuan ($34,750), respectively.

Tesla’s latest strategy follows 澳洲幸运5官方开奖结果体彩网:a year of price cuts in 2023 that rattled the EV industry. Elon Musk’s company also had to deal with growing competition from domestic Chinese firms, most notably BYD, which counts Warren Buffett’s Berkshire Hathaway as an investor. BYD lowered the price of its Song Pro hybrid SUV by 15.4% on Friday, following China Passenger Car Association data indicating January new-energy vehicle sales were down 30% in the country from December.

Tesla also raised the price of its Model Y rear-wheel drive and long-range vehicles in the U.S. by $1,000 to $43,990 and $48,990, respectively. In a post on X last month, Tesla said the “world’s bestselling” Model Y SUV was $1,000 lower, but prices would rise again in March.

Tesla shares were up 0.🌱6% at $203.13 as of about 1:00 p.m. ET Friday.