Tesla Cuts China Down Payment to 39,900 Yuan With Five-Year Zero-Interest Financing

Tesla China launched a new purchase incentive program covering October 30 to November 30, lowering the minimum down payment on five-year zero-interest installment plans for Model 3 and Model Y to 39,900 yuan ($5,600) from 79,900 yuan. The Model Y L minimum down payment drops to 59,900 yuan. Model 3 rear-wheel-drive and long-range trims now carry a 10,000 yuan final-payment discount, up from 5,000 yuan. However, with the prior 8,000 yuan Model 3 insurance subsidy having expired October 29, customers who previously qualified for both offers now receive 3,000 yuan less in direct cash savings. Model Y's final-payment discount was cut to 4,000 yuan from 7,000 yuan. The moves come as Tesla faces mounting pressure in China. Retail sales in the country totaled 381,100 units in the first nine months of 2026, down 11.9% year-over-year, with September volume falling 9.35% for a fourth straight monthly decline. Third-quarter net profit fell 43% to $787 million, and operating margin narrowed to 2.6% from 5.8%. UBS cited slowing demand and intensifying competition in China, while pointing to FSD, Robotaxi and humanoid robots as long-term growth drivers.