Tesla further extends 5-year 0-interest loan incentive in China to Aug 31

Tesla began offering a 0-interest loan incentive in China in April, valid through June 30. It extended the offer on July 1 until July 31.

(A Tesla Model Y on display at the new energy vehicle show in Shanghai in June 2024. Image credit: CnEVPost)

Tesla (NASDAQ: TSLA) further extended its 5-year 0-interest loan incentive for car purchases in China, which is set to expire at the end of this month, so as not to let the shrinking purchase incentive hit sales.

Customers who order a Model 3 or Model Y before August 31 will be able to enjoy a 0 percent loan for up to five years, according to information on Tesla's Chinese website today.

For comparison, the incentive was previously valid through July 31.

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The incentive is limited to rear-wheel-drive and long-range all-wheel-drive versions of the Model 3 and Model Y, and does not apply to the highest-priced performance variants of either model, as it did previously.

Tesla shared on Weibo a few hours later that the 5-year 0-interest loan incentive was extended to August 31.

With the 5-year 0-interest loan offer, customers can buy a Model Y with a daily installment as low as RMB 95 and a Model 3 with a daily installment as low as RMB 85, Tesla posters show.

The Model 3 is currently offered in three variants in China -- the entry rear-wheel drive version, the all-wheel drive long range version, and the all-wheel drive performance version -- with starting prices of RMB 231,900 ($31,880), RMB 271,900, and RMB 335,900 respectively.

The Model Y is also offered in China in 3 variants -- the entry rear-wheel drive, all-wheel drive long range, and all-wheel drive performance versions, with starting prices of RMB 249,900, RMB 290,900, and RMB 354,900 respectively.

Their prices, specs, or wait time information remain unchanged today. The latest wait times in China are currently 3-5 weeks for all three variants of the Model 3 and 1-3 weeks for the Model Y.

Tesla began offering a 0-interest loan incentive in China in April to spur sales, saying at the time that customers who get deliveries by June 30 would be eligible for the offer.

The US electric vehicle (EV) maker announced on July 1 on Weibo that the offer was extended to July 31.

Under the 5-year 0 percent interest loan offer, the cost for customers to buy a Model Y is equivalent to RMB 95 per day, and Model 3 is RMB 85 per day, Tesla said on July 1.

Tesla has a factory in Shanghai that began operations at the end of 2019 and started deliveries of the locally produced Model 3 in January 2020 and the locally produced Model Y in January 2021.

Tesla sold 59,261 vehicles in China in June, down 20.15 percent from 74,212 a year earlier but up 7.33 percent from 55,215 in May, according to data compiled by CnEVPost.