The automaker cut prices on the Long Range and Performance versions of the Model Y sports car by 14,000 yuan ($1,900) to 299,900 yuan and 349,900 yuan. Tesla also extended the 8,000 yuan insurance subsidy for the base version of the Model 3 sedan, keeping the benefit until the end of next month.

The price cuts followed actions by Geely Automobile Holdings Ltd.’s Zeekr brand, which cut prices by 37,000 yuan last week, and Zhejiang Leapmotor Technologies Ltd. which cut prices by 20,000 yuan earlier this month. Tesla started the price war with its first round of price cuts late last year, which made some models nearly 50 percent cheaper than in the U.S. and Europe.

Tesla shares fell 1.7% in early trading in the U.S., while top-selling Chinese automaker BYD Co. fell 8.7% in Hong Kong. Shares of Li Auto Inc, Xpeng Inc. and Leapmotor fell.

Shipments of Tesla vehicles from its factory in China fell 31% in July to the lowest level this year. The automaker announced last month that global production would decline in the third quarter due to downtime related to plant upgrades, without providing specifics. Production of an updated version of the Model 3 sedan is expected to begin soon.