The company Tesla has announced a big reduction in the prices of its vehicles in China and Germany, not long after it did so in the United States of America.

The latest price cut is another attempt for Ilona Musk's company to deal with declining sales and increasingly strong competition in leading markets, reports CNN.

The drop in prices reduced Tesla's profit margins, which also led to a drop in its shares by about four percent.

The world's largest manufacturer of electric vehicles on Sunday reduced the starting prices of four models in China, its largest overseas market, by 14,000 yuan, or about 1,810 euros.

The Model I, Tesla's best-selling car in China, is now on sale at an all-time low of 249,900 yuan (€32,384).

In Germany, Tesla's biggest market in Europe, the price of the rear-wheel drive Model 3 has also been reduced by 2,000 euros to 40,990 euros, according to the official website.

The first cuts were announced in the US on Friday, when Musk's company lowered the prices of three of its five models.

Tesla shares have fallen more than 40 percent since the start of the year, after quarterly car shipments fell for the first time in nearly four years, and the company also announced layoffs of about 10 percent of its workforce worldwide.