Tesla Boosts Model 3 Affordability In China With Insurance Subsidy, Low-Interest Loan

EV giant Tesla Inc TSLA has issued fresh incentives for customers looking to purchase a Model 3 RWD in China.

What Happened: Customers who purchase an existing Model 3 RWD from Tesla’s inventory starting today till June 30 can get an insurance subsidy of 8000 yuan, or about $1,125, and a preferential interest rate loan program. The vehicle starts at 231,900 yuan (approximately $32,600).

However, the customer must purchase the corresponding auto insurance through a cooperative insurance agency, the company said on its website.

Why It Matters: Tesla sold 77,695 made-in-China vehicles last month, as per China Passenger Car Association data. The numbers are inclusive of both exports and in-China sales.

The latest numbers mark a 2.4% increase in Tesla China sales from April which came to 75,842 vehicles. It also marks a 141.6% jump from the 32,165 deliveries reported in May 2022.

Late last month, CEO Elon Musk visited China and said Tesla was ready to expand business in the country. He also met Contemporary Amperex Technology Co Ltd chairman Zeng Yuqun and China’s commerce and industry ministers, among others, during the trip.

However, earlier in May, Tesla issued a recall for more than 1.1 million vehicles in China in response to a problem preventing drivers from choosing the regenerative braking system.

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