With a minimum monthly payment of 1,918 yuan under a seven-year ultra-low interest rate plan, can Tesla's "China-exclusive offer" save the market?

On January 6th, Tesla China announced a 7-year ultra-low interest car purchase plan for the Model 3, Y, and Y L. For the Model 3 and Y, the down payment starts from 79,900 yuan, and the monthly payment can be as low as 1,918 yuan. For the Model Y L, the down payment starts from 99,900 yuan, and the monthly payment can be as low as 2,947 yuan.

Behind this is the second consecutive year of declining sales for Tesla. In 2025, its sales volume was 1.636 million vehicles, a year-on-year decrease of 8.6%.

Can Tesla maintain its influence in the global electrification market?

Pressured in Multiple Markets

According to the European Automobile Manufacturers' Association, in the first 11 months of 2025, the number of new vehicle registrations for Tesla in the European market, including the EU, the European Free Trade Association, and the UK, decreased by 28% year-on-year to 203,000 vehicles.

In the US domestic market, Tesla is facing the impact of tariffs and the withdrawal of subsidies. According to media reports, in April 2025, US President Trump announced a 10% baseline tariff on goods from all countries and higher tariffs on countries that his government believes have set high barriers to US imports. In July, the US announced a 30% tariff on products imported from Mexico and the EU respectively.

Data shows that 50% of the components of Tesla's North American factories are supplied by Chinese companies, of which 20% are directly exported from China to North America, and 30% are provided by Chinese suppliers' factories in Mexico. Tesla has more than 400 first-tier suppliers in China, and more than 60 of them have entered its global supply system.

Tesla stated at its Q2 2025 earnings conference that the tariff cost increased by approximately 300 million US dollars quarter-on-quarter, of which about two-thirds affected the automotive business.

The impact of the "subsidy withdrawal" comes from the "Big and Beautiful Act" signed by US President Trump in July 2025. The act stipulates that as of September 30, 2025, the federal tax credit policy of 7,500 US dollars per vehicle for car purchases will be terminated. Tesla CEO Elon Musk also said bluntly at the Q2 2025 earnings conference that affected by the cancellation of the US electric vehicle tax credit policy and the impact of tariffs, Tesla does not rule out experiencing several "tough quarters" in the future.

To save overall sales, Tesla launched a budget-friendly model. At the Q2 2025 earnings conference, Tesla said that the budget-friendly model would be produced in the fourth quarter of 2025.

In October 2025, Tesla updated the ordering information for the standard versions of the Model Y and Model 3 on its official website. The website shows that the starting price of the standard version of the Model Y in the US market is 39,990 US dollars, about 11% cheaper than the previous starting price of the Model Y. The starting price of the standard version of the Model 3 dropped to 36,990 US dollars. The newly added "standard version" models have an estimated range of 321 miles (about 516 kilometers) when fully charged, and their configurations are reduced compared to the more high - end rear - wheel drive or all - wheel drive models.

Falling Behind Newcomers in the Chinese Market

In the Chinese market, Tesla's sales slump is also very obvious.

The China Passenger Car Association expects that the sales volume of the new energy passenger vehicle market in China will grow by about 25% in 2025. Among Chinese domestic brands, BYD's cumulative sales volume was 4.6024 million vehicles, a year-on-year increase of 7.73%. Its pure - electric vehicle models had a cumulative annual sales volume of 2.2567 million vehicles, a year-on-year increase of 27.86%. Leapmotor delivered 596,600 vehicles throughout the year, a year-on-year increase of 103%. XPeng Motors delivered 429,400 vehicles, a year-on-year increase of 126%. Hongmeng Zhixing delivered 589,100 vehicles throughout the year, a year-on-year increase of 32%.

Notably, BYD has surpassed Tesla to become the world's top - selling pure - electric vehicle brand.

With the rapid development of new energy vehicles in China, Tesla, the global leader in pure - electric vehicles, has seen a decline in sales. Data shows that in the first 11 months of 2025, the registered sales volume of Tesla in the Chinese market reached 531,900 vehicles, a year-on-year decrease of 7.37%.

In August 2025, Tesla launched the Model Y L exclusively for the Chinese market, with an official guide price of 339,900 yuan. It is reported that the Tesla Model Y L is a three - row, six - seat vehicle. Its size is longer than that of the Model Y (five - seat version), and it is not just a simple extension but a comprehensive improvement in comfort according to the needs of the Chinese market. The new car is equipped with an 82 - kilowatt - hour LG ternary lithium battery pack, with a CLTC range of 751 kilometers.

Data shows that since the delivery of the Model Y L started in September, nearly 28,000 vehicles were delivered in three months, with an average monthly delivery of more than 9,200 vehicles.

However, Tesla's sales in China still rely on the Model Y and Model 3. In the first 11 months of 2025, the sales volume of the Model Y was 359,500 vehicles, and the sales volume of the Model 3 was 172,400 vehicles.

In addition to launching models exclusively for the Chinese market, Tesla has also launched preferential policies multiple times.

In February 2025, Tesla China announced that from then until February 28th, all Model 3 models would enjoy a limited - time insurance subsidy of 8,000 yuan. After the subsidy, the lowest price was only 227,500 yuan. At the same time, car - buying customers could also enjoy a 5 - year interest - free loan policy and special charging benefits. In April, Tesla announced a new round of preferential policies. Before June 30th, for the first time, all Model Y models offered a 5 - year interest - free loan with a down payment of 79,900 yuan and a monthly payment as low as about 3,060 yuan. Before June 30th, all Model 3 models offered a limited - time insurance subsidy of 8,000 yuan, and the rear - wheel drive/long - range versions also had a 5 - year interest - free loan, with a monthly payment as low as about 2,460 yuan.

It is worth mentioning that according to the new energy vehicle purchase tax exemption policy, in 2026 and 2027, the purchase tax for new energy vehicles will be halved, with a maximum exemption of 15,000 yuan. The car - buying cost for consumers will increase.

Against this background, Tesla launched its longest - ever auto finance plan. On January 6th, Tesla officially announced a 7 - year ultra - low interest car purchase plan for the Model 3, Y, and Y L. For the Model 3 and Y, the down payment starts from 79,900 yuan, and the monthly payment can be as low as 1,918 yuan. For the Model Y L, the down payment starts from 99,900 yuan, and the monthly payment can be as low as 2,947 yuan. Customers who place an order before January 31st can also choose a 5 - year interest - free plan.

At the same time, the Model 3 launched an Ocean Blue paint job using a multi - color pearl powder process, and an 8,000 - yuan paint selection bonus is provided in conjunction with the owner referral program. The launch of the new paint enriches Tesla's color matrix.

It is worth mentioning that when Tesla's Full Self - Driving (FSD) will be fully launched in China will also be the key to improving its competitiveness. Musk once revealed that Tesla's FSD has only received "partial approval" in China. FSD is expected to receive full approval in China around February or March 2026.

Under the pressure of declining sales, Tesla is now also affected by US tariffs and the withdrawal of subsidies. At the same time, with the rapid upgrading of new energy vehicles in China, Tesla has to launch models exclusively for the Chinese market and repeatedly introduce price - cut and zero - interest policies to boost sales. The progress of FSD in China will also determine its future sales performance to a certain extent.

This article is from the WeChat public account "Visibility in the Auto Circle", author: Du Ge. Republished by 36Kr with permission.