Tesla has extended its 0% loan incentive in China through another month as it tries to achieve a record quarter.
As we recently reported, Tesla guided that it aims to deliver more than 515,000 vehicles in Q4 2024.
That’s 30,000 more vehicles than Tesla delivered during the same period last year, which was also the automaker’s all-time record quarter for deliveries.
If Tesla wants a record quarter, it needs a strong quarter in China, the world’s largest EV market and Tesla’s biggest market.
This year, Tesla’s go-to incentive to boost demand in China has been subsidizing loans with lower interest rates, which has been going on since July.
Now, Tesla has extended its 0% APR incentive in China through the end of November to give sales a boost.
Based on an update on its website, with a ￥79,900 (~$11,000 USD) down payment, you can get an up to 5-year 0% loan. You can also get below 1% APR with a smaller ￥45,900 (~$6,500 USD) down payment:
Customers who purchase a Model 3 rear-wheel drive or long-range all-wheel drive version between July 1, 2024 and November 30, 2024, and pick up the vehicle before the order due date in accordance with the delivery and payment terms in the order, and who meet the eligibility requirements, can apply for the following financial preferential plans:
- The down payment starts from ￥79900, and you can enjoy 0 interest plan for 1 to 5 years
- The down payment starts from ￥45900, and you can enjoy a 1 to 5 year low interest rate plan, with an annual fee rate as low as 0.5% (equivalent to an annualized interest rate of 0.92%)
According to insurance registration data (via Car News China), Tesla is off to a good start in Q4:
Tesla’s factory in Shanghai is the most productive in the world and the automaker generally uses it to produce vehicles for global exports early in a quarter, which can affect local deliveries.
Electrek’s Take
So far, if you are to believe Tesla’s financial reports, the automaker looks to be able to absorb these loan incentives somewhat easily since it actually was able to increase its gross margins last quarter.
If it’s working, extending it, especially in Q4 when Tesla needs to reach record demand makes sense.
We will keep close track of the data coming out of China this quarter.