Elon Musk's Tesla is trying to compete in China by offering a special deal to buyers. The company is raising incentives for buyers in China but with a catch.
Tesla has Changed Its Insurance Incentive Deals for November and December
As seen in the story by Reuters, the catfish is that the raised insurance incentives are only for buyers in China. This was a change from Tesla's original statement, where the raised insurance incentives would have been the same for the rest of the year.
The move is to push buyers to purchase from Tesla as they increased insurance incentives in November but decreased the insurance incentives in December. Tesla originally offered an insurance incentive worth 7,000 yuan, or about $970, for orders placed between October 1 and December 30.
Company Increased Its Incentives in November but Decreased Its Incentives in December
The company has recently changed the incentive deal to offering 8000 yuan, or about $1,100, for those that place orders in November. For those that make their purchases in December, the raised insurance incentive drops to just 4,000 yuan, or about $550.
Tesla also announced on a Chinese social media platform, "As long as you like it enough, pick up Tesla immediately!" along with the details of the changed policy. The statement promoted urgency and attracted more Chinese buyers to purchase from Tesla.
Model 3 and Model Y Starting Prices in China were Lowered
The insurance incentive is generally just a cash rebate that buyers get when they purchase insurance from insurer partners of Tesla. The company also dropped its Model 3 and Model Y starting prices in China and closed its flagship showroom in October.
A report from Barons shares how shipments of Tesla in China fall as it cuts its prices. The report also detailed how Covid has affected the company's functions in China due to the strict policies.
The Company Felt a Decrease in Vehicles Shipped in October
It was reported that Tesla shipments from its largest and most productive plant fell in October. The numbers of shipped vehicles for the company are still up from October last year but are down compared to September.
Tesla was able to ship 71,704 vehicles from its Shanghai plant in October. This is an increase from the 54,391 vehicles shipped in October of 2021.
Read Also: Automakers and Suppliers Disagree Over US Government's Proposal to Limit EV Tax Credits
Company Shipments had Dropped 14% in October Compared to September
However, compared to shipments made in September, the number has dropped by 14%. Tesla was able to ship 83,135 vehicles in September, which equates to 11,431 more vehicles shipped.
An article by The New York Times in late October shared how Tesla reduced the prices of its Model 3 sedan by 5% and its Model Y sport utility vehicle by 9%. The article noted that investors had higher expectations despite earnings doubling during Q3 of 2021 to $3.3 billion.
Related Article: Is Tesla Cybertruck Launch Delayed Again? Reports Say Mass Production Will Start by the End of 2023
This article is owned by Tech Times
Written by Urian B.
