Tesla Offers $1,100 Incentive in China as Sales Slump to Multi-Year Low
Tesla is slashing costs in China with an insurance subsidy of 8,000 yuan ($1,101.08) on Model 3 purchases to attract customers amid intense market competition eroding its EV share. The company has also offered a limited-time five-year, 0% interest financing plan for rear-wheel drive or long-range all-wheel drive models. Tesla's China-made shipments plummeted 49.2% year-over-year to 30,688 vehicles in February, the lowest monthly total since July 2022.
- As Tesla scrambles to regain ground in a highly competitive EV market, the company's willingness to offer such incentives may be seen as a sign of the desperation felt by struggling automakers.
- Can Tesla's aggressive cost-cutting measures and product promotions help it reclaim its position as a leader in China's rapidly evolving electric vehicle landscape?