Tesla China Shortens Payment Cycle To 90 Days In 2024: Report

Tesla, Inc. TSLA shares are trading higher Friday morning.

Tesla China shortened its payment cycle to supply chain partners to just 90 days in 2024, down from 100 days in 2023, according to Grace Tao, Tesla’s vice president of External Affairs, reported CnEV Post.

Tao shared the update in a Weibo post, noting that four other unnamed new energy vehicle (NEV) makers still take over 150 days to settle payments.

This improvement is part of Tesla’s efforts to streamline operations and enhance supplier relationships.

See Also: Tesla, Rivian Signal End To 4-Year Legal Battle Over Alleged Trade Secrets Theft

Meanwhile, the EV behemoth revamped its referral program across North America as it races to a delivery target of 515,000 vehicles in the fourth quarter. Tesla’s updated referral program includes enhanced discounts and rewards, with specific incentives for the Cybertruck.

The company recently started offering unlimited overnight charging via the Tesla Electric service, down from $15 a month, aiming to attract more buyers.

This follows discounts of up to $4,000 on select Model 3 and Model Y vehicles to avoid a decline in annual deliveries.

Despite these efforts, analysts predict that Tesla's fourth-quarter deliveries will set new records but may not prevent a yearly sales decline. The potential removal of the $7,500 EV tax credit by the incoming Trump administration could further affect Tesla's sales, as highlighted by Gary Black, who warns of significant earnings impact if the credit is cut.

TSLA Price Action: Tesla shares are trading higher by 2.51% to $341.18 at publication Friday.

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Photo: Courtesy Tesla