EV maker Tesla has offered zero interest finance for its new and refreshed Model Y in China as it seeks to boost numbers in the face of growing competition from domestic players, and growing global pressure on its share price.
The moves in the world’s biggest electric vehicle (EV) market were first reported by local automotive outlet CnEVPost. It included news that Tesla has raised the price of the long-range version of its Model Y by RMB10,000, or the equivalent of around $A2,000 but the AWD version accounts for only a tiny fraction of sales.
Pricing for the entry-level rear-wheel drive New Model Y – as it is described on the Tesla website, following the car’s recent refresh – remained unchanged at RMB263,500, or around $A57,100, converted, and Tesla is offering zero interest finance on the RWD version.
The success of the Model Y relaunch will be crucial for Tesla as it fights consumer pushback in the European, north America and Australian markets, and intense competition from rival EV makers in the China market.
Electrek reports that insurance registration numbers released in China this week indicate that Tesla sold a less than expected 15,300 vehicles in China this week. It comes amid new initiates on autonomous driving by Zeekr and the growing number of competitive models by other Chinese EV makers.
Tesla share also fell significantly on Tuesday, with the stock losing another 5.3 per cent to close at $US225 a share, taking its falls just in the past week to 38 per cent. Arson attacks were reported against Tesla vehicles in Texas.
It was also reported this week that Tesla was planning to make a lower-cost version of the Model Y in an effort to make up the ground it is losing to its Chinese peers.
According to “three people with knowledge of the matter” who spoke to Reuters, Tesla is currently developing the cheaper Model Y under a project codenamed “E41”, and will begin building the car on existing production lines at its Shanghai Gigafactory some time in 2026.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.