Tesla China recently announced that customers who take delivery of the Model 3 Rear-Wheel Drive, Long Range Rear-Wheel Drive, or Long Range All-Wheel Drive variants by February 28 will receive an insurance subsidy of RMB 8,000. This move follows Tesla’s introduction in January of a low-interest financing plan with a seven-year term and marks another promotional measure adopted by the company in response to evolving market conditions. Consumer purchasing decisions have become more cautious due to the upcoming adjustment of the new energy vehicle (NEV) purchase tax—from full exemption to a 5% levy starting in 2026—as well as the gradual expiration of local government subsidies for trade-ins of older vehicles. According to data, Tesla delivered 625,698 vehicles in China in 2025, a year-over-year decline of 4.78%. This latest subsidy continues Tesla’s typical early-year strategy to stimulate demand and is expected to be phased out gradually as market conditions improve.