FYI: Tesla China extends its five-year zero-interest financing program for select Model 3 and Model Y variants, reflecting the hyper-competitive nature of the Chinese automotive market.
Tesla China Extends Five-Year Zero-Interest Loan Program Until October 2024
Tesla China has announced an extension of its five-year, zero-interest financing program for selected variants of the Model 3 and Model Y, a move aimed at bolstering its presence in an increasingly competitive market. Originally launched in April, the program will now be available until the end of October 2024.
Details of the Financing Plan
The updated financing plan is prominently displayed on the order pages for the Giga Shanghai-produced Model 3 sedan and Model Y crossover. As per the new terms, the zero-interest loan applies to the purchase of the following variants:
- Model 3 Rear Wheel Drive (RWD)
- Model 3 Long Range Dual Motor All Wheel Drive (AWD)
- Model Y Rear Wheel Drive (RWD)
- Model Y Long Range Dual Motor All Wheel Drive (AWD)
Notably, the Performance versions of both the Model 3 and Model Y are not covered by this financing extension.
Pricing and Availability
The Giga Shanghai-made Tesla Model 3 RWD starts at RMB 231,900 ($33,050), while the Dual Motor AWD variant is priced at RMB 271,900 ($38,780). The top-tier Model 3 Performance costs RMB 335,900 ($47,900). Meanwhile, the Model Y starts at RMB 249,900 ($35,640) for its RWD version, RMB 290,900 ($41,490) for the Dual Motor AWD, and RMB 354,900 ($50,600) for the Performance trim.
Estimated delivery times for the Model 3 in China are currently 4-6 weeks across all variants, while the Model Y promises a quicker turnaround with a 1-3 week delivery window.
Competitive Market Dynamics
The extension underscores the hyper-competitive nature of China’s automotive market. A report from CNEV Post highlighted the challenges electric car manufacturers face when attempting to retract incentives, as it can drive potential buyers to consider other options. With a growing list of competitors for both the Model 3 and Model Y, maintaining attractive financing options is critical for Tesla.
Sales and Market Momentum
Tesla China is currently experiencing robust sales momentum. The company sold 63,456 vehicles in China in August 2024, marking a new high for the year. Based on a recent note from Deutsche Bank, Tesla China is expected to achieve local deliveries of approximately 64,000 vehicles in September. So far, the company has recorded around 46,000 domestic deliveries in the first three weeks of September.
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William Kouch, Editor of Automotive.fyi
