Tesla is offering a limited-time insurance subsidy of 8000 yuan ($1,101) for buyers of its Model 3 sedan in China. This move is seen as an attempt to boost demand for the vehicle.
Key Details
- The subsidy is available for customers who place their orders before March 17.
- Buyers of the rear-wheel drive variant or the long-range all-wheel drive variant can also apply for a 5-year 0% interest financing plan.
- The Model 3 is Tesla’s most affordable vehicle, with prices starting at 235,500 yuan for the base model and 339,500 yuan for the high-end Performance variant.
Background
The announcement comes after Tesla’s sales in China dropped by 49.2% in February, with 30,688 vehicles sold. This decline includes sales of both the Model 3 and Model Y, as well as exports to markets like Europe.
Global Sales
In the first quarter of 2024, Tesla delivered 386,810 vehicles worldwide. However, sales have been sluggish in Europe and China so far this year, raising concerns about quarterly deliveries. The company has also introduced a refreshed Model Y, which is expected to result in a temporary production halt as factories are retooled.
Analyst Insights
According to Tesla researcher Troy Teslike, the company’s deliveries in this quarter are expected to be the lowest in the past 10 quarters. Additionally, Tesla has introduced 0% APR financing on all Model 3 trims in the US, with a 60-month financing period and a $3,999 down payment.
Market Impact
The limited-time insurance discount and financing options are seen as an attempt by Tesla to stimulate demand for the Model 3 in China. With sales declining in key markets, the company is under pressure to meet its quarterly delivery targets. The success of these initiatives will be closely watched by investors and analysts in the coming weeks.