- Chinese customers purchasing a Model 3 on or before February 28 are eligible for an insurance subsidy of RMB 8,000 ($1,150).
- The latest insurance subsidy follows Tesla's introduction of a 7-year low-interest financing plan for vehicle purchases in China on January 6.
Tesla (NASDAQ: TSLA) has reintroduced insurance subsidies for its Model 3 electric sedan in China, following the launch of ultra-long-term low-interest financing in the world's largest electric vehicle (EV) market earlier this month.
Chinese customers purchasing the Model 3 rear-wheel drive, long range rear-wheel drive, or long range all-wheel drive variants by February 28 can receive an insurance subsidy of RMB 8,000 ($1,150), according to a Saturday Weibo post by the US EV maker.
The starting prices for these three variants in China are RMB 235,500, RMB 259,500, and RMB 285,500 respectively.
Tesla's highest-priced Model 3 variant — the performance all-wheel-drive version starting at RMB 339,500 — is not eligible for the latest insurance subsidy.
Tesla had offered insurance subsidies at the start of each year for the past two years as one measure to counter seasonal weakness in China's auto market during the early months. As the overall auto market recovers, the subsidy typically phases out gradually.
The latest insurance subsidy follows Tesla's January 6 launch of a 7-year low-interest financing plan for vehicle purchases in China. Following the introduction of the 7-year financing plan, multiple companies including Xiaomi (HKG: 1810, OTCMKTS: XIACY), Li Auto (NASDAQ: LI, HKG: 2015), Xpeng (NYSE: XPEV, HKG: 9868), and Voyah have followed suit.
These measures aim to counteract weakening auto demand in early 2026 driven by multiple factors.
Entering 2026, new energy vehicle (NEV) buyers face a 5% purchase tax cost, rather than the previous full exemption from the standard 10% tax rate.
Additionally, vehicle trade-in subsidies in most Chinese cities expired in mid-November last year. While the policy has been extended, it remains in a transitional phase.
Tesla's 2025 sales performance in China was lackluster, with annual deliveries totaling 625,698 vehicles — a 4.78% year-on-year decline, according to data compiled by CnEVPost.
The Model 3 performed slightly better, with 200,361 units delivered in China for the year, a 13.33% year-on-year increase, though its sales were overshadowed by the Model Y.
The Model Y delivered 425,337 units in China in 2025, a 11.45% year-on-year decline.
($1 = RMB 6.9633)
