SHANGHAI, Jan 6 Reuters Tesla cut electric car prices in China for the second time in less than three months on Friday, stoking expectations for a wider price war for batterypowered vehicles in the world39;s largest auto market where demand has weakened.

Tesla also cut prices on its bestselling Model Y and Model 3 electric vehicles in Japan, South Korea and Australia.

The coordinated price cuts were part of an effort to help stoke demand for Tesla39;s output at its Shanghai factory, the company39;s single largest production hub, according to a person with direct knowledge of the plan.

It was also the first major move by the electric vehicle maker since Tesla appointed its lead executive for China and Asia, Tom Zhu, who has been based in Shanghai, to oversee global output and deliveries.

Tesla shares fell 5.9 in premarket trading after the price cuts to 104.

Established automakers have long turned to incentives in the face of weaker demand to control inventory, but, until late last year, Tesla had been able to keep prices steady or even to push them higher because of a strong pipeline of orders from consumers.

Last month, Musk said radical interest rate changes had affected the affordability of all cars, new and used, and that Tesla could lower pricing to sustain volume growth

The latest cut in China, along with a price cut in October and incentives extended to Chinese buyers over the past three months, mean a 13 to 24 reduction in Tesla39;s prices from September…