Tesla, through its Chinese arm, has just extended its industry-leading 5-year 0-interest offer for the Model 3 electric sedan and Model Y electric crossover customers, CnEVPost reports, citing the company’s announcement on Weibo.
Tesla extends 0-interest loans for EV purchases in China
Tesla’s 5-year 0-interest loan incentive for Chinese customers already expired on June 30, 2024. However, the electric vehicle giant decided to extend the offer by another month.
Customers who buy a Model 3 or Model Y can still take advantage of this enticing offer until July 31, 2024.
In hindsight, Tesla started offering 0-interest loan incentives in April 2024 to boost sales amid intensifying competition in the Chinese electric vehicle market. The incentives were accessible to buyers who took deliveries by the end of June.
How to access Tesla China’s 5-year 0-interest loan offer?
To access the incentive, Tesla Model 3 and Model Y buyers must offer a minimum down payment of RMB 79,900 ($11,000).
Through this program, buyers of Tesla Model Y will only need to pay RMB 95 per day in equivalent. The cost further declines to RMB 85 per day for the Tesla Model 3.
The Musk-led company also offers lower down payments of as low as RMB 45,900. However, it will entail annual interest rates starting at only 0.92%, per the poster.
Boosting sales momentum amidst growing competition
Tesla has operated an enormous electric vehicle production plant in Shanghai since its launch in late 2019.
The local factory has been extremely successful, advancing as one of Tesla’s most productive factories globally.
However, the surge of low-cost Chinese electric vehicles and new model launches from legacy automakers and startups have affected Tesla’s market share in recent quarters.
Therefore, initiatives like the 5-year 0-interest offer are crucial for Tesla to entice more customers and regain its dominance. The loan offer seemed to be a success for Tesla. In the latter half of June, Tesla China saw its new electric vehicle registrations increase to 17,500 units, marking a new record high for 2024.
