• The limited-time promotion covers the final weeks of the third quarter, offering discounts of 10,000 yuan on the Model Y and 5,000 yuan on the Model 3.
• The offers also include paint options, insurance subsidies for selected variants and financing deals, as Tesla’s China retail sales remain under pressure.

Tesla (NASDAQ: TSLA) has begun offering cash incentives on locally produced vehicles in China, a rare move over the past year.

The US electric vehicle (EV) maker announced on Monday that customers in China who order and take delivery of inventory Model 3 or Model Y vehicles by September 30, 2026, can receive cash incentives of up to 10,000 yuan ($1,475).

All Model Y inventory variants qualify for a 10,000 yuan reduction in the final payment, while all Model 3 inventory variants qualify for a 5,000 yuan reduction.

The limited-time promotion covers the final weeks of the third quarter. Tesla’s deliveries in China remain under pressure, while exports from its Shanghai factory support overall sales growth.

Beyond the cash incentives, Tesla is offering a limited-time 8,000 yuan paint option benefit. The offer covers selected Model 3 variants and paint configurations, as well as the Model Y and Model Y L.

The Model 3 Rear-Wheel Drive, Long Range Rear-Wheel Drive and Long Range All-Wheel Drive also qualify for an 8,000 yuan insurance subsidy, applied toward the final vehicle payment.

Customers must accept the promotion’s terms and purchase and maintain qualifying coverage from a partner insurer. The all-wheel drive Model 3 Performance is excluded from the insurance subsidy.

For financing, eligible customers purchasing the 3 non-Performance Model 3 variants can apply for interest-free loans of up to 5 years with a down payment starting at 79,900 yuan.

These variants also offer low-interest financing over 6 to 7 years. With a down payment starting at 79,900 yuan, the annual fee rate is as low as 0.5%, equivalent to an annualized interest rate of 0.98%. With a down payment starting at 45,900 yuan, the annual fee rate starts at 0.7%, equivalent to an annualized interest rate of 1.36%.

After all applicable incentives, monthly payments start at 2,377 yuan for the Model 3 and 2,894 yuan for the Model Y with a down payment of 79,900 yuan, Tesla said on Weibo.

The company also listed a choice of 3 charging benefits and limited-time financing offers for the Model Y and Model Y L. Specific incentives depend on the variant, configuration and order terms.

The promotion follows Tesla China’s August wholesale sales of 86,166 vehicles, up 3.57% year-on-year but down 7.92% from July, ending 3 consecutive months of sequential growth.

Tesla China’s cumulative wholesale sales reached 647,694 vehicles in the first 8 months of the year, up 25.63% year-on-year, according to China Passenger Car Association (CPCA) data compiled by CnEVPost.

Wholesale figures include deliveries in China and exports from the Shanghai factory, so they do not directly reflect domestic demand. Tesla’s August retail sales in China have yet to be released.

In July, Tesla delivered 27,249 vehicles in China, down 32.91% year-on-year. Its Shanghai factory exported a record 66,330 vehicles that month.

Tesla’s cumulative deliveries in China fell 12.44% year-on-year to 266,204 vehicles in the first 7 months. Model 3 deliveries declined 32.66% to 68,533, while Model Y deliveries fell 2.27% to 197,671.

The new variant, expected to be the Model Y Performance, has a 78.4 kWh battery pack, the same one used in Tesla’s longest-range models in China.

($1 = 6.7795 yuan)