Tesla Introduces Insurance Subsidy for Model 3 in China to Boost Sales

The automaker offers new incentives in China's competitive EV market as global demand falters.

Tesla announced an 8,000-yuan (approximately $1,100 USD) insurance subsidy for Model 3 buyers in China, valid until February 28, 2025.
The subsidy accompanies a five-year zero-interest financing option, marking Tesla's most significant promotion for the Model 3 in China since 2019.
This move comes after a recent price hike on the Model 3, effectively offsetting the increase and lowering the cost for consumers.
Tesla's global deliveries declined in 2024 compared to 2023, with the company increasingly relying on the Chinese market for sales growth.
Analysts suggest the subsidy may have limited impact on demand, as competition intensifies with local EV makers like Xpeng and BYD.