Tesla is extending its zero-interest incentives for buyers to defend its market share in mainland China and mitigate a slump in worldwide sales, days after being forced to halt orders for imported electric vehicles (EVs) amid a US-China tariff war.
The EV maker will allow consumers to stretch their loan repayment on Model Y SUVs to five years, it said on Tuesday. The sweetened offer, against the current three-year repayment terms, would be available until the end of June, it added.
Buyers could choose an interest-free loan to buy the SUV with a 79,900 yuan (US$10,930) down payment and 3,060 yuan in monthly instalments over five years, it said. The other option involves a 45,900 yuan down payment and 3,718 yuan monthly instalments at 0.98 per cent interest annually over five years.
The SUV is priced between 263,500 and 313,500 yuan, depending on the specifications.
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How Chinese companies have pulled ahead of Tesla in the electric vehicle race
How Chinese companies have pulled ahead of Tesla in the electric vehicle race
“Tesla has seen a significant decline in sales across multiple regions,” said Shen Meng, director at Chanson & Co, a Beijing-based investment bank. “Combined with the impact of tariffs, its performance expectations have weakened, leading to a substantial drop in its stock price.”
