Tesla has unleashed a potent arsenal of financial incentives to boost sales during its typical end-of-quarter drive.
Tesla frequently slashes prices and offers incentives near the end of each quarter to stimulate demand and reduce inventory levels effectively.
To mitigate the impact of inventory holding costs, Tesla recognizes revenue from vehicle deliveries sooner than it would under generally accepted accounting principles (GAAP), as these sales help quarterly monetary outcomes appear higher. If vehicles are not delivered by quarter-end, they remain on Tesla’s balance sheet without generating income.
Recently, Tesla has rolled out incentives across its entire electric vehicle (EV) lineup, excluding the Cybertruck.
The automaker introduced a novel referral programme, yielding a $1,000 discount on new vehicle purchases.
Recently, Tesla has been offering subsidies on its auto financing as an incentive.
The automaker has introduced a promotional offer, waiving the zero-down payment requirement for Model 3 and Model Y vehicles, which can be paired with an even lower APR.
If you opt for a “wonderful” credit score in Tesla’s online configurator, you’ll qualify for a 5.59% interest rate. But if you select the new “promotion” credit score option, Tesla is offering $0 down payment and an APR of just 2.49%.
For a small down payment, you’ll be able to secure an interest rate as low as 1.99%.
The promotion runs until September 30, aligning with the end of the quarter.
Electrek’s Take
Tesla’s most notable promotional effort in the past year likely belongs to this campaign. Compared to current interest rates, a 2% rate essentially amounts to free money, and the fact that no repayment is required upfront will undoubtedly resonate with many individuals.
I anticipate that this will help Tesla clear its US stock this quarter.
Despite previous reports, Chinese sales have stagnated while European numbers have declined.
Despite uncertainty, it remains to be seen whether Tesla can achieve significant sales this quarter. The automobile manufacturer shipped 444,000 vehicles during the fourth quarter of 2023 and 435,000 units in the third quarter of that year.
Tesla faces its first 12-month stretch without a decrease in electric vehicle (EV) deliveries in a decade.
As buyers scrutinize financial performance, they may be monitoring revenue margins closely, anticipating that the newly introduced referral program and subsequent financing subsidies will erode profit margins.
