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Elon Musk-run Tesla has temporarily slashed the prices of some of its Model Y vehicles in the US through the end of February as competition from China rises.

The new price cuts come less than a month after the automaker cut Model Y prices in Germany.

Tesla dropped the price of the Model Y rear-wheel drive and Model Y long-range by $1,000, to $42,990 and $47,990, respectively. The temporary price reduction, which lasts until February 29, offers discounts of 2.3 per cent and 2 per cent off the prior models' prices, reports Fox Business.

According to its website, the company has decided not to reduce costs for its Model Y Performance variant and other models.

Tesla said on its website that the reduced pricing applies to deliveries purchased now through February 29, and that costs will jump by $1,000 or more on March 1.

The company reduced Model Y prices in Germany last month after most of the EV manufacturer's car production at its Berlin-area factory was halted owing to a scarcity of crucial components caused by shipping disruptions in the Red Sea, the report said.

Moreover, the report mentioned that Tesla is bracing for increased cooling demand in the face of expanding competition from a growing number of low-cost EVs, including those manufactured by China's BYD, which surpassed Tesla as the world's biggest EV manufacturer in the final quarter of 2023.

Meanwhile, Tesla has recalled more than two million vehicles -- almost all of the cars it sold in the US -- due to incorrect font size on warning lights.