Tesla shares down 3% in premarket after Elon Musk's EV firm cuts price of cars in China

Tesla shares slipped in pre-market trade on Monday after the company cut the price of some of its cars in China.

Shares of the electric carmaker were down around 3% in New York before the market open on Monday.

Tesla slashed the price of its Model 3 and Model Y vehicles in China, one of the company's most critical markets.

The starting price for the Model 3 sedan was reduced to 265,900 Chinese yuan ($36,615) from 279,900 yuan. The Model Y sports utility vehicle now costs 288,900 yuan versus the previous price of 316,900 yuan.