Tesla shares fell nearly 6 percent on Friday, data showed, after the electric car maker unveiled a higher-priced updated Chinese-made Model 3 and cut prices on its premium cars and its “fully autonomous driving” software ( FSD). Reuters.

The launch of the new Model 3 sedan marks the first time the automaker has launched a vehicle in China ahead of the United States, underscoring its growing reliance on the country, where it competes for market share with BYD.

The car is built at Tesla’s factory in Shanghai, and the starting price is 12% higher than the previous base model in China. It will also be exported to other markets in Asia, Europe and the Middle East.

Raising the base price of the Model 3, Tesla’s best-selling model since the Y, could help protect margins. But the drop in prices for premium cars underscores the fierce competition among EV makers, especially in China.

This year, the Elon Musk-led automaker has ignited a price war that has led to increased supplies.

The exterior design of the updated Model 3 is not much different from its predecessor, said Guidehouse Insights analyst Sam Abuelsamid.

“The market thinks it may not be enough” to revive sales amid falling demand and rising competition, he added.