Tesla offers interest-free loans in China for Model Y to lift EV sales, fend off rivals

The delivery time for the long-range variant of the SUV has been cut to three to five weeks from six to 10 weeks, according to the US carmaker’s China website. A shorter waiting time is a sign that Tesla has raised the output of the long-range edition at its Shanghai Gigafactory, according to two sales managers.

The carmaker also launched a three-year interest-free loan – which could save buyers more than 10,000 yuan (US$1,375) in interest – to bolster sales of the long-range Model Y variant priced at 313,500 yuan, which has a driving range of 719km. The offer is valid until the end of this month, Tesla said on Tuesday.

The same offer has been available to buyers of the basic edition of the SUV, priced at 263,500 yuan since March 18.

“Tesla will take more actions to entice local fans of its Model Y,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Model Y, as the bestselling SUV in China, remains attractive to many middle-income consumers.”