Tesla Inc. is introducing 0% annual percentage rate (APR) financing on all Model 3 trims in the U.S. as the company faces challenges with demand, including declines in key markets.
What’s Happening
- 0% APR financing is now available for all Model 3 trims
- Customers in the U.S. can purchase the Model 3 with 0% APR financing for a period of 60 months and a $3,999 down payment
Model 3 Pricing
The base version of the Model 3 starts at $42,490, while the more premium Performance All Wheel Drive variant starts at $54,990. All three variants of the vehicle are also eligible for a federal EV tax credit of $7,500.
Challenges Facing Tesla
The new offer comes amidst concerns about deliveries dropping in the first quarter. The company launched its refreshed Model Y SUV in January, which has resulted in lost production during the days of retooling factories. Tesla CEO Elon Musk has warned that margins will be impacted due to idle capacity and other ramp-related costs.
Expected Deliveries
According to researcher Troy Teslike, Tesla’s deliveries in this quarter are expected to be the lowest they have been in the past 10 quarters. Demand has been declining across Europe, China, and the U.S., partly due to company CEO Elon Musk’s political opinions and activities reflecting on the brand.
Key Points
- Tesla is offering 0% APR financing on all Model 3 trims in the U.S.
- The company is facing challenges with demand, including declines in key markets
- Deliveries are expected to be the lowest they have been in the past 10 quarters
- Demand has been declining due to various factors, including the company CEO’s political opinions and activities
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Other electric vehicle companies, such as Ford, are also experiencing changes in demand and sales. For example, Ford’s Mustang Mach-E led the company’s U.S. EV sales in February, but the company is facing threats from potential tariffs.