by CHEN Xiaotong
Tesla has launched a new round of auto financing incentives in China, offering up to seven-year low-interest loans across its lineup as demand slows in the world’s largest electric vehicle market.
The U.S. automaker said on Feb. 26 that customers placing orders by March 31 would qualify for the plan. Buyers of the Model 3, Model Y and Model Y L can alternatively opt for a five-year interest-free scheme, effectively eliminating borrowing costs.
Analysts said the move effectively lowers purchase costs without changing sticker prices.
Under the new scheme, the Model 3 requires a minimum down payment of 79,900 yuan (about US$12,000), with first-month installments starting from 1,759 yuan. Customers who order and take delivery within a specified period are also eligible for a limited-time 8,000 yuan insurance subsidy.
The Model Y carries the same minimum down payment, with first-month payments starting from 2,188 yuan, while the Model Y L requires at least 99,900 yuan upfront and offers initial installments from 2,849 yuan.
Tesla launched similar financing offers in January, underscoring intensifying sales pressure.
The renewed financing push comes as Tesla faces slowing sales in China and globally.
Tesla China's wholesale sales in 2025 totaled 851,732 vehicles, including domestic deliveries and exports, down 7.1% from a year earlier. January wholesale volume stood at 69,129 units, company data showed.
Globally, Tesla delivered 1.636 million vehicles in 2025, an 8.6% decline year on year, marking the second annual drop. It was also the first time Tesla's annual electric vehicle sales were overtaken by China's BYD.
BYD reported total vehicle sales of about 4.6 million units in 2025, up 7.7% year on year, including roughly 2.26 million battery electric vehicles, a rise of 27.9%.
Tesla's revenue fell 3% to $94.8 billion in 2025, its first annual decline on record, while net income dropped 46% to $3.79 billion.
Speaking on an earnings call on Jan. 28, Chief Executive Elon Musk said Tesla would discontinue production of the Model S and Model X next quarter as it shifts focus toward autonomous driving and artificial intelligence.
Tesla is converting production lines at its Fremont, California plant to manufacture the Optimus humanoid robot, targeting annual output of 1 million units.
