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.
(File photo shows a Tesla Model Y. Image credit: CnEVPost)
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.
Tesla Monthly Retail Sales in China 2024-2026
Month
2024
2025
2026
January
39,881
33,703
18,485
February
30,141
26,777
March
62,398
74,127
April
31,421
28,731
May
55,215
38,588
June
59,261
61,484
July
46,227
40,617
August
63,456
57,152
September
72,200
71,525
October
40,485
26,006
November
73,490
73,145
December
82,927
93,843
Tesla monthly retail sales in China
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.
BYD’s new car registrations in Europe reached 18,242 units in January, higher than Tesla’s 8,075 units.
