(Yicai Global) Nov. 23 -- American electric vehicle giant Tesla has cut its prices in China for the Model S five-door liftback by between 12 percent and 26 percent.

The California firm confirmed the price reduction on its website while also announcing that the Model 3, the firm's new four-door sedan, will sell for between CNY540,000 (USD77,860) and CNY595,000, which is slightly lower than analyst expectations.

The Model S 75D with a lower configuration is priced at CNY78,2900, 12 percent lower than the previous price of CNY 88,7600, while the price of the Model S P100D has been lowered 26 percent to CNY1.1 million (USD157,304). The price of the Model X P100D has fallen 24 percent from CNY1.6 million to CNY1.2 million.

Some analysts believe that this round of price reductions in response to China's tariff adjustment for imported cars from 15 percent to 40 percent.

Tesla Chief Executive Elon Musk warned last month of upcoming changes for the Model S and Model X interiors, Electrek reported. The company said that the changes are "to simplify product offerings and provide the best experience for customers."

Cui Dongshu, secretary-general of the Chinese Passenger Car Association, believes that Tesla's recent poor sales in China are the main reason for its price reduction.

The company sold 6,710 vehicles in China in the first three quarters this year, down from 20,000 for all of last year.