Tesla launches new financing plan in China, halving minimum down payments

• Down payments for select Model 3 and Model Y variants fall to 39,900 yuan ($5,940), half the previous level.
• The offer covers orders placed from October 30 through November 30, as Tesla’s China deliveries have declined year-on-year for 4 consecutive months.

Tesla (NASDAQ: TSLA) has launched a new round of purchase incentives in China, lowering the minimum down payment for 5-year zero-interest financing on select Model 3 and Model Y variants to 39,900 yuan ($5,940) as it seeks orders amid pressure on local sales.

Tesla announced on Friday that the new financing plan applies to eligible customers who place orders from October 30 through November 30.

The plan combines a down payment, monthly installments and a final balloon payment. It offers 5 years of zero-interest financing while deferring part of the repayment until the end of the loan term to reduce monthly payments.

Eligible variants include the Rear-Wheel Drive, Long Range Rear-Wheel Drive and Long Range All-Wheel Drive versions of both the Model 3 and Model Y, with down payments starting at 39,900 yuan.

The 6-seat Model Y L is also eligible, with a minimum down payment of 59,900 yuan. These vehicles carry a final balloon payment of 39,900 yuan under the plan.

According to official promotional posters, the Model 3 Rear-Wheel Drive, priced at 235,500 yuan, is offered with a 39,900 yuan down payment and monthly payments of up to about 2,429 yuan over 5 years, after a limited-time purchase discount of 10,000 yuan.

The Model Y Rear-Wheel Drive, priced at 263,500 yuan, requires a down payment of 39,900 yuan and monthly payments of up to about 2,995 yuan over 5 years, after a limited-time purchase discount of 4,000 yuan.

The Model Y L, priced at 339,000 yuan, also qualifies for a 4,000 yuan limited-time purchase discount, with a down payment of 59,900 yuan and monthly payments of up to about 3,920 yuan over 5 years.

These monthly payment figures are examples based on the specific variants and payment terms shown in the posters and do not necessarily apply to other versions. Financing is subject to lender approval.

Buyers can also choose a 5-year zero-interest plan without a final balloon payment, with down payments likewise starting at 39,900 yuan for the Model 3 and Model Y, and 59,900 yuan for the Model Y L.

For the same variants and incentives, monthly payments under the plan without a balloon payment are up to about 3,094 yuan for the Model 3 Rear-Wheel Drive, 3,660 yuan for the Model Y Rear-Wheel Drive and 4,585 yuan for the Model Y L.

Compared with the zero-interest financing offer Tesla announced in September for the Model 3 and Model Y, the minimum down payment has fallen from 79,900 yuan to 39,900 yuan, a reduction of about 50%.

The new plan further reduces buyers’ upfront cash requirements. However, choosing lower monthly payments leaves a balloon payment due at the end of the loan term, so the reduction in monthly installments does not itself represent a vehicle price cut.

Tesla has continued to court Chinese buyers with promotions and product updates. On October 1, it upgraded the China-market Model 3 with a 16-inch central touchscreen and added a light gray premium interior option without changing prices at the time.

Tesla delivered 64,837 vehicles in China in September, down 9.35% year-on-year, marking the fourth consecutive monthly decline, according to China Passenger Car Association (CPCA) data compiled by CnEVPost.

In the first 9 months of this year, Tesla’s China deliveries totaled 381,088 vehicles, down 11.93% year-on-year. Its Shanghai factory exported 361,972 vehicles over the same period, up 108.44%, as overseas demand continued to support sales from the plant.

Tesla delivered 486,532 vehicles globally in the third quarter, down 2.13% year-on-year but above market expectations.

($1 = 6.7138 yuan)