Tesla offers up to 7,000 yuan in China discounts as sales slump for third straight month

• All Model 3 variants qualify for a 5,000 yuan discount, while select Model Y variants get 7,000 yuan off. Eligible orders can also receive additional benefits.
• The promotion comes after 3 consecutive months of year-on-year declines in Tesla's China sales, with Model Y deliveries falling about 26% in August.

Tesla (NASDAQ: TSLA) has launched a new round of limited-time incentives in China for orders placed through the end of October, seeking to attract buyers as local sales remain under pressure.

Customers who order on or before October 31 can receive a 5,000 yuan ($740) discount on the final payment for any Model 3 variant, or 7,000 yuan ($1,040) off select Model Y variants, Tesla said on Weibo on Friday.

The promotion also includes up to 5 years of interest-free financing, an 8,000 yuan limited-time paint option benefit and a choice of 3 charging benefits. Eligibility depends on the variant and promotion terms.

The Model 3 Rear-Wheel Drive, Long Range Rear-Wheel Drive and Long Range All-Wheel Drive variants also qualify for an 8,000 yuan insurance subsidy. The Performance All-Wheel Drive variant is excluded from the subsidy.

After applicable final-payment discounts and insurance subsidies, the Model 3 starts at 222,500 yuan, according to official promotional posters. The Model Y starts at 256,500 yuan after the final-payment discount.

Tesla's China website continues to list base starting prices of 235,500 yuan and 263,500 yuan for the 2 models, respectively, with the promotion offered through limited-time discounts and other benefits.

With a down payment of 79,900 yuan, monthly payments after applicable incentives start at about 2,377 yuan for the Model 3 and 2,944 yuan for the Model Y, the company said. Financing is subject to lender approval.

This is Tesla's latest sales incentive announcement this month. On September 7, the company offered final-payment discounts of 10,000 yuan for the Model Y and 5,000 yuan for the Model 3 to customers who purchase and take delivery of eligible inventory vehicles by September 30.

The 2 promotions have different eligibility requirements. The earlier offer required customers to purchase and take delivery of inventory vehicles by the end of September, while the new offer requires orders by the end of October and delivery in accordance with the order terms.

The official posters also state that the new final-payment discounts cannot be combined with the limited-time purchase incentives announced on September 7.

The promotion comes as Tesla's China sales remain under pressure. The company delivered 50,047 vehicles in China in August, down 12.43% year-on-year for a third consecutive monthly decline, according to China Passenger Car Association (CPCA) data compiled by CnEVPost.

Model Y deliveries fell 25.76% year-on-year to 29,260 vehicles. Model 3 deliveries rose 17.18% to 20,787, but the increase was insufficient to offset the Model Y's decline.

Tesla delivered 316,251 vehicles in China in the first 8 months of the year, down 12.44% year-on-year. Its Shanghai factory exported 331,443 vehicles over the same period, up 114.70%, with exports exceeding domestic deliveries.

Tesla is also expanding its lineup to attract buyers. On September 11, it launched the Model Y Performance All-Wheel Drive in China at a starting price of 369,000 yuan, making it the fifth variant in the local Model Y lineup.