Tesla will continue offering its five-year, zero-interest financing option in China next month, extending the purchase incentive for select Model 3 and Model Y variants. Originally introduced in April as a limited-time offer, the financing plan now allows Chinese customers who buy certain Tesla vehicles before November 30 to secure a 0 percent interest rate on their loans, as detailed on the company’s Chinese website.
The incentive is available for the entry-level and long-range all-wheel-drive versions of both the Model 3 sedan and Model Y crossover, both of which are manufactured at Tesla’s Shanghai facility. The locally produced Model 3 and Model Y are offered in three variants: a rear-wheel-drive entry-level model, a long-range all-wheel-drive model, and a high-performance all-wheel-drive version. Starting prices for the Model 3 range from RMB 231,900 ($32,570) for the entry-level to RMB 335,900 for the performance model, while the Model Y starts at RMB 249,900 and goes up to RMB 354,900.
Teslaâs interest-free loan offer initially launched on April 3 marked the company’s first foray into zero-interest financing in China. Since then, Tesla has extended the offer each month under âlimited-timeâ conditions, responding to the intensifying competition in the Chinese EV market. Maintaining this incentive has allowed Tesla to keep pace with competitors by helping customers avoid higher up-front costs, a critical factor in a market where price sensitivity can drive buyers to alternative EV brands.
Despite the incentive and competitive pricing, delivery times have remained stable, with Model 3 buyers facing a wait of 4 to 6 weeks, while Model Y buyers can expect a delivery timeframe of 1 to 3 weeks. The Chinese website has also received a design update to clarify monthly payment details for customers interested in the 0 percent interest financing option.
Teslaâs continued extension of the loan incentive highlights the challenges of retracting such benefits in China’s highly competitive EV market, where scaling back incentives can risk driving potential buyers to rival manufacturers.
