Chinese car manufacturing companies are preparing to take advantage of the recent rise in prices of the American electric car giant "Tesla," offering incentives such as price reductions and coupons to attract potential car buyers.

"NIO," a car manufacturer based in Shanghai, announced via its social media channel "Weibo" a plan to provide incentives to car drivers to convert their gasoline cars to electric vehicles worth up to one billion yuan ($138 million), in the form of benefits such as battery replacement, additional subscriptions to assisted driving functions, and even a "NIO" mobile phone, according to Bloomberg News Agency.

On the other hand, the Chinese electric car company "XPeng" lowered the prices of some of its models by up to 20,000 yuan.

"Chery Automobile" said it would cover the purchase tax costs on selected models, in addition to offering better trade deals for customers' used cars.

These steps contrast with what the American electric car giant "Tesla," owned by Elon Musk, did earlier yesterday, Monday, when it announced raising the price of its most popular SUV model, the "Y".