(Reuters) - Tesla has reduced its car production at its plant in China, Bloomberg News reported on Friday, as the U.S. electric vehicle-maker grapples with slow demand and strong competition in the market.

The company earlier in March told employees at its Shanghai factory to lower output of both the Model Y sport utility vehicle and Model 3 sedan - the two types it makes in China - by working five days a week instead of the usual 6-1/2 days, the report said, citing people familiar with the matter.

Tesla did not immediately respond to a Reuters request for comment.