Tesla China Launches 5-Year 0% Financing, Boosts Promotions Across All Models to Stabilize Sales

To boost sales, Tesla China announced a new round of financing incentives on February 26: customers who place orders by March 31 will be eligible for ultra-low-interest loans with terms up to seven years across all vehicle models. Additionally, the Model 3, Model Y, and Model Y L offer an interest-free financing option for five years. For the Model 3, down payments start at RMB 79,900, with monthly installments as low as RMB 1,759, plus an RMB 8,000 insurance subsidy. The Model Y and Model Y L require minimum down payments of RMB 79,900 and RMB 99,900 respectively, with monthly payments starting from RMB 2,188 and RMB 2,849. This marks Tesla’s second such promotional campaign in China this year. Amid product transitions and intense competition, Tesla’s global deliveries declined by 8.6% in 2025, while its sales in China dropped by 7.37% year-over-year. In January 2026, the Model Y was outsold by Xiaomi’s SU7, and the Model 3 sold only 1,640 units. Facing the rapid rise of Chinese brands like BYD, Tesla is lowering purchase barriers through financial incentives while accelerating its strategic shift toward autonomous driving and AI to secure breathing room for the future.