Tesla Extends China's 5-Year 0% Auto Loan Promotion to July 31

Tesla has extended its 5-year 0-interest loan offer in China for car purchases, now available until July 31. The incentive, which covers the Model 3 and Model Y, requires a minimum down payment of RMB 79,900. The loan offers a daily cost equivalent to RMB 95 for the Model Y and RMB 85 for the Model 3. Tesla also provides lower down payment options, starting at RMB 45,900, with annualized interest rates as low as 0.92%. The move aims to boost sales in China, where Tesla operates a Shanghai factory since 2019.

In a move to boost sales in the Chinese market, Tesla (NASDAQ: TSLA) has extended its 5-year 0% interest loan offer for car purchases. This incentive, initially introduced in March, is now available until July 31, 2024 [1]. The offer applies to both the Model 3 and Model Y, requiring a minimum down payment of RMB 79,900 ($11,040) [1].

The daily cost equivalent for the Model Y under this financing option is RMB 95, while the Model 3's is RMB 85 [1]. Lower down payment options are also available, starting at RMB 45,900, with annualized interest rates as low as 0.92% [1].

Tesla's finance policy in China is designed to cater to various customer needs. For those purchasing a Tesla vehicle directly, a 0% interest loan for up to three years is offered. However, customers who trade-in their old cars can enjoy a 0% interest loan for up to 5 years [1].

Customers ordering a Model 3 or Model Y before April 30, 2024, can apply for the 5-year 0% interest loan offer if they complete delivery by June 30, 2024. However, the down payment must be higher than RMB 79,900 [1].

This is the first time Tesla has offered a 0% interest loan in China, as the EV market experiences challenges at the beginning of the year, with a price war in full swing [1]. According to data released by Tesla on April 2, 2024, the company delivered 386,810 vehicles globally in the first quarter, marking an 8.53% year-on-year decline and a 20.16% decrease from the fourth quarter of 2023 [1].

In response to these market conditions, Tesla recently reduced production of the Model Y and Model 3 at its Shanghai factory and increased the prices of all three variants of the Model Y by RMB 5,000 on April 1, 2024 [1].

References:
[1] CNEVPost. (2024, April 3). Tesla offers 0-interest loans in China to boost sales. Retrieved from https://cnevpost.com/2024/04/03/tesla-offers-0-interest-loans-in-china-boost-sales/

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