Tesla introduced new financing options in China to stimulate demand for its Model 3 and Model Y vehicles. The incentives include five-year zero-interest loans and seven-year low-interest plans.
The strategy aims to offset the negative impact of a newly implemented purchase tax on electric vehicles. Tesla designed the plans to make its cars more accessible to consumers through the end of January.
Tesla faces significant regional headwinds, including increased competition from local manufacturers. BYD recently overtook Tesla in annual global deliveries.
Data indicates Tesla's China exports declined in 2025. This decline highlights the challenge of maintaining market share and underscores the importance of these new incentives to boost sales.