- This marks Tesla’s second extension of its 7-year low-interest financing plan this year, following its unconventional launch of the promotion on January 6.
- More than ten automakers, including BYD, Nio, Xpeng, and Geely, have followed suit.
Tesla (NASDAQ: TSLA) has again extended its ultra-long-term car loan program in China, as it faces mounting sales pressure in the world’s largest electric vehicle (EV) market.
Tesla China announced Thursday that it has further extended the validity period of its 7-year ultra-low-interest and 5-year interest-free financing programs until March 31.
This marks the company’s second extension of the policy this year. Tesla initially launched the unconventional program on January 6 to offset rising costs stemming from China’s planned 5% new energy vehicle (NEV) purchase tax effective in 2026.
Originally set to expire at the end of January, Tesla extended the promotion to late February on January 24.
The repeated extensions of this promotional policy reflect Tesla’s challenges in China.
Tesla’s 2025 retail sales in China totaled 625,698 units, marking a 4.78% year-on-year decline, according to data compiled by CnEVPost.
2024
2025
2026
Entering 2026, the status of its flagship model has further eroded — in January, the Model Y lost its position as China’s top-selling EV to Xiaomi (HKG: 1810, OTCMKTS: XIACY) YU7.
In response to Tesla’s aggressive financing promotions, China’s largest NEV maker BYD officially entered the fray on Wednesday.
BYD’s Ocean lineup and personalized sub-brand Fang Cheng Bao announced a 7-year low-interest financing plan valid through March 31.
Before BYD’s move, competitors including Nio Inc (NYSE: NIO, HKG: 9866), Li Auto (NASDAQ: LI, HKG: 2015), Xpeng (NYSE: XPEV, HKG: 9868), and Geely Auto (HKG: 0175, OTCMKTS: GELYF) had already rolled out similar extended-term loan policies.
With Chinese regulators discouraging direct and destructive price wars, automakers are intensively shifting toward more lenient auto consumer finance policies.
