Tesla Inc (NASDAQ:TSLA) is offering zero-interest and ultra-low interest rate loans on its Model 3, Model Y and YL vehicles in China until end-January, the company’s website showed on Tuesday.
The company is offering zero-interest loans of up to five years, and ultra-low rate, seven-year loans for models purchased before January 31, checks by Investing.com showed.
The promotions are the latest attempt by the electric vehicle maker to shore up its slowing sales. Tesla had last year also rolled out similar promotions on some of its models.
Tuesday’s promotions, which were also announced on social media, come just a day after data showed Tesla’s China shipments fell 7% in 2025 from a year earlier.
Earlier data showed Chinese rivals, specifically BYD (HK:1211), overtaking Tesla in sales over the past year.
Tesla is grappling with a prolonged decline in global sales, hit by a mix of stiff competition from Chinese EV makers and as cost-conscious customers sought better value in hybrid vehicles.
Consumer backlash over CEO Elon Musk’s increased political presence also hurt Tesla’s sales, especially in Europe, where the EV maker’s market share dropped to a fraction of its rivals.
In addition to weakening sales, Tesla is also facing deteriorating margins, largely due to a bitter price war in China.
CEO Musk has flagged a pivot into artificial intelligence, autonomous driving, and robotics, to offset the impact of slowing vehicle sales.
