In January 2025, electric vehicle producer Tesla (TSLA) reported its first annual drop in deliveries, moving just 1.79 million vehicles in 2024 compared to 1.81 million deliveries in 2023.
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Tesla sales are down in some of its key markets. In EV-friendly Europe, buyers in multiple countries are choosing competitors over the American automaker, with sales declining well deep into double-digit territory in countries such as France, Sweden, and Norway.
However, the Elon Musk-led auto brand is taking matters into its own hands to improve sales and possibly give buyers a good deal on a new EV.
Tesla Model 3
Tesla
Tesla’s enticing offer for skeptical EV buyers
As part of a new promotion, Tesla is offering its buyers a very generous financing deal on its lowest-priced model, the compact Model 3 sedan.
Well-qualified buyers can choose between $0 due at signing or 0% APR financing on a new Model 3. However, qualified buyers who are also eligible for the $7,500 Federal Tax Credit (for which all models, including the Performance, are eligible) can get $0 down payment and 0.99% APR when they finance.
The fine print on the Tesla website reads:
Promotional rate valid only on Model 3 orders placed on or after March 3, 2025, with a minimum down payment of 15% plus applicable taxes and fees. Terms up to 60 months. Promotional rate is subject to credit approval and may change or end at any time and without notice.
[…]
$0 due at signing with 0.99% APR for term of 60 months when qualified buyers apply the $7,500 Federal Tax Credit at point of sale. Not all applicants will qualify. Promotion is subject to change or end at any time, and cannot be applied retroactively.
Related: Tesla rival offers salvation for EV owners fed up with Elon Musk
Tesla is not the only EV deal in town
It should be noted that while Tesla is making its own enticing deal, it is far from the only deal in town.
Volkswagen, for instance, is also offering 0% APR on its ID.4 crossover, Hyundai is offering 0.99% APR on its IONIQ 5 and 0% APR on the IONIQ 6, while Chevrolet is offering 0% APR and an additional $1,250 incentive for buyers who are also Costco members.
Additionally, Polestar has been welcoming Tesla owners with open arms and massive discounts of up to $20,000 on the Polestar 3; a generous offer that a Polestar executive said has been received well and is continuing.
“The numbers speak for themselves,” Polestar Head of Sales Jordan Hofmann said in a post on LinkedIn. “This week saw some of the highest order days for Polestar 3…The excitement is real, the momentum is growing, and as I always say – we’re just getting started!”
More Business of EVs:
EV market share hits record highMercedes is leading a massive overhaul of its EV businessTesla VP shares critical update on long overdue EV
Tesla’s offer comes amid backlash against the automaker
Tesla’s generous offer comes amid a drop in sales that can be partially attributed to Elon Musk’s recent affairs, which have sparked international backlash.
In recent months, Musk’s increasingly outspoken political positions—and his new role as a cost-cutting government contractor—have prompted backlash from activists and disgruntled owners. Organized protests outside Tesla showrooms and overt acts of vandalism against Tesla cars and its Superchargers have become frequent.
At the same time, Tesla shares have dropped nearly 30% over the past four weeks and nearly 5% this week. Share prices have dropped from a high of $300 on March 3 to a low of $262 the next day.
Tesla, Inc. shares are traded on the NASDAQ as TSLA.
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