Tesla has implemented a new discount on Model 3 vehicles in China, the world’s biggest EV market, amid a worldwide demand slump for the automaker.
We reported that Tesla’s sales in Europe were cut in half in January compared to last year, despite last year already being down.
With sales stagnating in the US and going down in Europe, Tesla has been increasingly relying on China, the world’s biggest EV market.
Tesla slightly increased sales in the market last year, but it has been using discounts. Chinese automakers warned of another EV price war in 2025 and Tesla is now already implementing discounts.
The automaker announced a new RMB 8,000 ($1,100 USD) insurance subsidy on new Model 3 orders:
This comes after a small price increase on the Model 3 last month, but this discount completely negates it.
The incentive can be applied on top of Tesla’s subsidized 0% financing rate. It is not applied to Model Y, but that’s because Tesla introduced the new version of the vehicle last month, and production is limited for the foreseeable future.
Tesla is now advertising customers in China can buy a Model 3 for a down payment as low as RMB 79,900 (~$11,000 USD) and monthly payments as low as RMB 2,460 (~$338).
Electrek’s Take
China is always an important market for Tesla, but it is especially important right now because it leads the transition to the new Model Y.
The upcoming extended factory shutdown for the Chinese New Year is going to limit Tesla’s production, which was already going to be down due to the transition to the new Model Y.
Tesla is likely betting on the already-upgraded Model 3 to compensate, but it looks like it is having some issues if it is implementing more discounts.
Author: Fred Lambert
Source: Electrek
