Tesla China extends its 7-year financing promotion once more

"Tesla has extended its seven-year ultra-low-interest and five-year interest-free financing programs in China once more, pushing the offers through March 31, the end of the first quarter. The move marks Tesla's second extension of the program this year. The financing plan was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China's planned 5% NEV purchase tax in 2026."

"The repeated extensions reflect growing competitive pressure. Tesla's 2025 retail sales in China totaled 625,698 units, representing a 4.78% year-on-year decline, as per data compiled by CNEV Post. That being said, this decline is partly caused by the Model Y's changeover to its new variant in Q1 2025, which resulted in lower sales during the quarter."

"Tesla's financing push has not gone unanswered. BYD this week introduced its own seven-year low-interest plan across its Ocean lineup and Fang Cheng Bao sub-brand, also valid through March 31. Other competitors including NIO, XPeng, Li Auto, and Geely Auto have already rolled out extended-term loan programs as well."

Tesla has extended its seven-year ultra-low-interest and five-year interest-free financing programs in China through March 31, 2026. Originally introduced January 6 to offset higher ownership costs ahead of China's planned 5% NEV purchase tax in 2026, the program has now been extended twice. Tesla's 2025 China retail sales declined 4.78% year-on-year to 625,698 units, partly due to Model Y production transitions. The repeated extensions reflect intense competitive pressure, with competitors including BYD, NIO, XPeng, Li Auto, and Geely Auto launching their own extended-term financing programs. Tesla exported significantly higher volumes in early 2026, with January exports reaching 50,644 vehicles.

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