Tesla Offers 7-Year Loan at 0.7% Interest—Lowering Entry Barrier, but Sales Boost Remains Uncertain

To stimulate consumption, Tesla has introduced an industry-first seven-year ultra-low-interest loan program in China this month, with an annual interest rate of just 0.7%. Taking the rear-wheel-drive Model 3 (priced at RMB 235,500) as an example, the down payment is approximately RMB 63,500, with a monthly installment of RMB 2,268 and total interest under RMB 9,000—significantly lowering the barrier to car ownership. Around the same time, brands like Xiaomi and Li Auto have also intensified their financial incentives, rolling out offers such as three-year zero-interest or five-year low-interest financing plans. However, frontline sales staff note that the promotional impact of Tesla’s policy has been limited in practice: creditworthy customers typically opt for shorter loan terms, while those with weaker credit profiles often fail to pass bank approval. Some consumers have reportedly been repeatedly rejected due to credit history issues, delaying loan disbursement indefinitely. Industry insiders believe that although these ultra-long-term, low-interest schemes generate publicity, their actual effectiveness in boosting sales remains to be seen.