This article first appeared on GuruFocus.
Tesla (TSLA, Financials) is pulling out familiar and some new tools to spark interest in the Model Y as the year winds down. With only a few weeks left in 2024, the company is offering 0% APR financing for up to six years, along with free color and interior upgrades that normally add $1,000 to $2,500 to the price. Buyers considering the Model 3 can also get financing at 2.99% APR, a significant drop from typical rates.
The push comes at a moment when the loss of federal tax credits has made electric vehicles less affordable for many shoppers. Still, the incentives gave the stock a lift, with shares rising nearly 2.5% on Tuesday as investors welcomed signs that Tesla is working to protect delivery volume.
Even so, the broader landscape remains challenging. In Europe, Stellantis is teaming up with ride-hailing company Bolt to introduce driverless vehicles to a massive customer base a move that could crowd Tesla’s position in autonomous driving. Ford has also stepped up its efforts, calling the current period a fight for survival in the EV market.
How far these incentives go and what they signal about underlying demand will be clearer once Tesla reports its next set of results.
