Tesla has pulled heavy weapons when it comes to financing to boost sales during the usual quarter-end push.
Tesla has been regularly introducing price cuts and rebates at the end of each quarter to boost sales and lower inventory.
It helps the financial results of the quarter look better since Tesla has already spent the money to build those cars and if they are not delivered at the end of the quarter, they end up in its “inventory” without generating any money.
Recently, Tesla introduced, or re-introduced, incentives across its entire EV lineup except for the Cybertruck.
For example, the automaker implemented a new referral program, which basically results in a $1,000 discount on new cars.
Lately, Tesla has been financing its cars as an incentive.
Now, the automaker has introduced a zero down payment on Model 3 and Model Y vehicles, which can be combined with a very low APR:
If you put in a 'best' credit rating in Tesla's online planner, you get an interest rate of 5.59%, but if you choose a “promotional” credit rating, Tesla offers a $0 down payment and an APR of 2.49% .
For a small fee, you can get the rate down to 1.99%.
The promotion will continue until September 30, which coincides with the end of the quarter.
Electrek's Take
This could be Tesla's biggest promotion of the year. Compared to current interest rates, 2% is free money and the fact that nothing is required on delivery should appeal to many people.
I would expect it to help Tesla clear US inventory this quarter.
However, as we previously reported, sales are down in China and down in Europe.
Therefore, it is not clear whether Tesla can increase sales this quarter. The automaker delivered 444,000 vehicles last quarter and 435,000 vehicles in Q3 2023.
Tesla is currently tracking to have its first year by reducing EV deliveries in a decade.
Investors will also be watching profit margins as this new transfer and financing arrangement should have a negative impact on margins.
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