Tesla, which is traded on the NASDAQ under the ticker symbol TSLA, has launched a new initiative in China to enable automobile purchases without requiring a down payment in an effort to boost sales.
The American electric vehicle maker is providing a zero down payment programme for clients purchasing already constructed Model 3 and Model Y automobiles until June 30, as revealed today on Weibo.
Tesla provides favourable lending rates and the option of a 0% down payment to Chinese buyers of pre-owned Model 3 vehicles. Buyers of Model 3 cars can receive an annualised cost as low as 2.5%, which translates to an annualised interest rate as low as 4.58%, according to statistics supplied by Tesla.
In addition to the zero down payment programm, buyers of the Model Y can choose to apply for a zero percent interest loan upon providing a minimum down payment of RMB 79,900.
Tesla had previously on April 3 in China unveiled a zero-interest loan option for the Model 3 and Model Y. The Model 3’s zero-interest financing offer has been withdrawn in light of the most recent statement.
Tesla had previously offered a zero down payment option in China in November 2021, but it was eventually withdrawn because of a spike in orders that caused delivery delays.
Tesla is currently dealing with a more competitive and altered market environment in China. To stay competitive, Tesla responded by lowering the price of all of its models in China on April 21. The locally made Model 3 and Model Y now start at RMB 231,900 and RMB 249,900, respectively.