Tesla Extends Subsidies In China By 1 Month As EV Maker Prepares To Report Q4 Deliveries
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) extends insurance subsidies for entry-level Model 3 vehicles in China until Jan. 31, offering a 6,000 yuan subsidy for deliveries completed by month-end. This is a reduction from the 8,000 yuan offered in December. Tesla also introduces a loan incentive with rates starting at 3.65% for Model 3 and Y, and 2.5% for Model S and X. Despite price cuts earlier in 2023, demand didn't surge significantly, but China sales showed momentum in the second half of the year. Tesla's Q4 global deliveries report is anticipated before the market opens Tuesday.
January 01, 2024 | 8:04 pm
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Tesla extends insurance subsidies and loan incentives in China, aiming to boost sales as it prepares to report Q4 deliveries. The company's China sales have gained momentum in H2 after price cuts earlier in the year.
The extension of subsidies and introduction of loan incentives are likely to support Tesla's sales in China, potentially leading to a positive short-term impact on TSLA's stock price. The anticipation of the Q4 delivery report may also influence investor sentiment. However, the impact of price cuts on margins and the overall market conditions should be considered.
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