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 CNY 499,000 ($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 US-made vehicles and auto parts for three months from January, lowering the cost of importing US-produced Tesla cars into China for sale.
Also earlier this month, Tesla Motors said it will begin European deliveries of its long-awaited mass-market Model 3 electric car from February.
A spokesperson told AFP the first to take delivery would be customers who had reserved their Model 3 starting March 2016 if they confirm their order by January 1.
The spokesperson said customers would be invited to confirm over the coming weeks, starting Wednesday.
Tesla's mid-size, four-door all-electric family car was first unveiled in its US home base in July last year.
Controversial founder Elon Musk in October described the Model 3 as "the best-selling car in the US in terms of revenue and the 5th best-selling car in terms of volume."
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