Tesla introduced 7-year ultra-low-interest financing for its Model 3 and Model Y vehicles in China. This move joins a growing trend among domestic competitors. The action intensifies competition within the Chinese new energy vehicle (NEV) market. The focus shifts from vehicle specifications and sticker prices to the overall cost of ownership.
Tesla aims to lower the barrier to entry for potential buyers by extending loan terms and offering low rates. Major players, including Xiaomi EV, Li Auto, and XPENG, adopt this financial strategy. This indicates a market-wide shift toward using financing as a key competitive tool.