Before the turn of the year, Mercedes-Benz also had to lower prices in China for its luxury car EQS - the fully electric version of the flagship S-Class - and for the electric EQE model.
In the last quarter, Tesla increased worldwide deliveries by almost a third to around 405,000 vehicles, but remained below analyst expectations of around 421,000.
Tesla dominated the electric vehicle market for several years, selling cars as fast as they could be built. But rivals have begun to catch up globally, with inflation and rising raw material costs also weighing.
Tesla stock dropped by two-thirds last year partly because chief executive Elon Musk sold billions of dollars worth of shares to fund his takeover of Twitter.
