According to the California-based electric carmaker's Chinese website, prices of certain Model 3 cars were cut by up to 7.6 percent. The starting price for a Model 3 in China now is 499,000 yuan ($72,000).
It was the third time in the last two months that Tesla has adjusted its prices in China. In November, the company cut the prices of its Model X and Model S cars by 12 to 26 percent.
Tesla at the time said it was "absorbing a significant part of the tariff to help make cars more affordable for customers in China."
Earlier this month Tesla cut prices on its Model S and Model X after China's finance ministry said it would suspend additional tariffs on U.S.-made vehicles and auto parts for three months from January, lowering the cost of importing U.S.-produced Tesla cars into China for sale.