Tesla, Ride for 16,000 KRW a Day... Launching Customer Recruitment in China

Electric vehicle manufacturer Tesla has launched a new installment promotion in China, claiming that customers can drive a new car for 16,000 KRW per day (about 85 yuan). This is interpreted as a strategy to lower entry barriers and attract customers amid a recent decline in market share in China.

According to local media such as China’s First Financial Daily on the 1st, Tesla started a 1 to 5-year interest-free installment promotion for the Model 3 and Model Y from that day. For the standard product lineup, customers can receive interest-free and low-interest benefits, with an average daily payment of 85 yuan over 5 years, and about 107 yuan per day for the long-range front-wheel drive version.

[Image source=Reuters Yonhap News]

This sales promotion is closely related to Tesla’s recent sluggish performance in the Chinese market. Tesla’s deliveries in China for the first quarter totaled 228,760 units, a 3.68% decrease compared to the same period last year. In contrast, China’s BYD, which has become the world’s largest electric vehicle manufacturer, delivered 624,398 units, tripling Tesla’s volume and growing 13% year-over-year, indicating a pessimistic trend for Tesla.

Tesla’s first-quarter deliveries, including China, decreased by 8.5% year-over-year, marking the first quarterly decline since the second quarter of 2020.

Tesla’s second-quarter sales results will be announced on the 1st (local time), and the company’s stock price rose 6% on the New York Stock Exchange. The average estimate from 12 analysts compiled by financial information firm LSEG is about 438,019 units, a 3.7% decrease from last year. Among the analysts, seven have lowered their second-quarter estimates over the past three months. Meanwhile, BYD’s second-quarter electric vehicle sales, announced earlier, increased 21% year-over-year to about 426,000 units.