Electric vehicle major Tesla has kick-started its new year by offering incentives to boost sales in China. The US-based car manufacturer has announced a special incentive scheme for the Model 3 compact sedan and Model Y crossover. The Tesla Model 3 and Model Y electric cars in China come with special incentives amounting up to $1,450 if the buyers take delivery by 28th February. The auto company has further stated on its official website that it is extending a 6,000 yuan subsidy in China, which it started offering in early December 2022, and the other 4,000 yuan subsidy on purchasing insurance through Tesla, which was first introduced in November last year.
The latest incentive announced by Tesla for its Model 3 and Model Y EVs comes on the back of concerns about the slumping demand in China. The key market for the automaker has witnessed a dip in demand and sales of its cars, which contributed to Tesla shares plunging 37 per cent in December, further accentuating the downfall of Tesla shares in 2022. In fact, December was the most dismal month for Tesla shares in 2022, which was also the stock’s worst-ever year so far.
China is not the only market where Tesla has announced a fresh discount while ending 2022. In the US as well, Tesla offered special discounts to close out the year, first introducing a $7,500 offer on the Model 3 and Model Y and then extending the offer to more expensive Model S and Model X.
It is yet to be known if these special discounts to prop up sales in key markets across the world have been successful or not. Tesla is expected to announce record quarterly deliveries in early January when the result of these incentives will be known. However, the car brand has already ruled out meeting its objectives to grow by 50 per cent for the year.
First Published Date: 01 Jan 2023, 09:29 AM IST