Tesla is offering the same purchase incentive amount as last month, but the coverage has been expanded from inventory vehicles to include all new vehicles.
(Image credit: CnEVPost)
Tesla (NASDAQ: TSLA) is kicking off 2023 with an expanded purchase incentive in China, offering discounts of up to RMB 10,000 ($1,450).
For Model 3 and Model Y orders with deliveries completed between January 1 and February 28, Chinese consumers can receive an RMB 6,000 delivery incentive, the company announced Sunday on Weibo.
If they purchase car insurance from Tesla's partner insurance agencies, they can receive an additional RMB 4,000 subsidy, according to Tesla.
These purchase incentives apply to all new vehicles, including new cars that consumers customize on Tesla's website, show cars, test cars, and vehicles that have already been produced.
In addition, Tesla is encouraging owners of other brands of vehicles to trade in their cars for a Tesla by offering a free 90-day trial of Enhanced Autopilot (EAP) software.
Tesla launched the EAP feature option in China on February 5, 2021, with the upgrade costing 32,000 yuan, half the price of FSD.
EAP adds several features over the free Basic Autopilot (BAP), including auto-assisted navigation driving, auto-assisted lane changing, auto-parking, and smart summoning.
These purchase incentives from Tesla are a continuation of previous measures, although the coverage has been expanded.
Tesla has a factory in Shanghai that produces the Model 3 and Model Y.
On October 24, 2022, the electric vehicle maker lowered the prices of the entire Model 3 and Model Y lineup in China. Along with the price cut, Tesla resumed its owner referral program in China, which it had discontinued a year earlier.
On November 8, Tesla announced that consumers who choose to purchase their car insurance from its insurance partners will receive a discount when they make their final payment. That discount was RMB 8,000 for vehicles delivered between November 8 and November 30, and RMB 4,000 between December 1 and December 31.
It is worth noting that Tesla has offered this insurance discount for the past two months only on vehicles that have been produced, not on vehicles that consumers have customized on its website.
On December 7, Tesla announced that Chinese consumers who purchase a Tesla vehicle that has already been produced will receive an additional discount of RMB 6,000 in addition to the RMB 4,000 insurance subsidy.
Tesla's latest measures mean that it is offering the same amount of purchase incentives in China as last month, but with expanded coverage to include all new vehicles, rather than being limited to stock vehicles.
Tesla appears to be facing demand problems in China as the country's economic growth slows and there is stronger competition from local electric vehicle companies.
Tesla will run production for 17 days from January 3 to January 19 and will stop production of its electric vehicles from January 20 to January 31 to allow for an extended break during the Chinese New Year, Reuters reported in a December 27 story, citing an internal schedule.
Tesla did not specify the reason for the production slowdown in its output plan, but it is not the established practice to stop production for an extended period during the Chinese New Year, the report noted.
Local media outlet Caijing quoted a Tesla China source as saying on December 28 that the information about Tesla's holiday was inaccurate.
"In fact, most employees at Giga Shanghai will be on vacation from January 20-28, which will be two days longer than the legal holiday, giving everyone the flexibility to schedule their return home," the source said.
Tesla's Shanghai plant began operations in late 2019, and there have never been any previous reports of the plant stopping production for any holiday.
Tesla sold 100,291 China-made vehicles in November, including 62,493 vehicles delivered in China and 37,798 vehicles exported, data released last month by the China Passenger Car Association (CPCA) showed.
The electric vehicle giant's December sales figures in China are expected to be released by the CPCA later this week.