Tesla Inc. has introduced a temporary car insurance subsidy of 8,000 yuan (approximately $1,100) for new Model 3 vehicle purchases in China. This move is likely an attempt to boost demand for the company’s cheapest offering.
Details of the Offer
Customers can take advantage of the subsidy by placing an order for any Model 3 variant before February 28. However, this offer is exclusive to the Model 3 and does not apply to other Tesla models. Additionally, the company’s five-year zero-interest financing program remains available until the end of February for the two lower variants of the electric sedan, excluding the performance version.
Model 3 Pricing
The Model 3 starts at 235,500 yuan after a price increase of 3,600 yuan in January. The premium Performance variant is priced at 339,500 yuan.
Expert Insights
Tesla researcher Troy Teslike commented on social media that demand for Tesla vehicles is dwindling. He stated, “Tesla is likely to struggle a lot with deliveries this quarter.” While the subsidy aims to improve demand, its impact is expected to be limited. Teslike anticipates more promotions for the Model 3 and Model Y in Europe and the Cybertruck in the US.
Importance of the Chinese Market
China is a crucial market for Tesla, with the company selling around 657,000 vehicles in the country in 2024. This marks an 8.8% year-over-year growth, despite a decline in global deliveries. Tesla reported global deliveries of 1.79 million vehicles in 2024, down from 1.81 million in 2023.
Recent Developments
In January, Tesla launched a refreshed version of the Model Y in China, scheduled for delivery in March. The company has commenced production of the refreshed vehicle at its Shanghai gigafactory.
Currency Conversion
1 yuan is equivalent to approximately 14 cents.