Tesla brings back 0% loans to boost demand in the US

Tesla has brought back 0% APR financing to new Model 3 orders in the US in order to boost demand in at the end of a tough quarter for the automaker.

Today, Tesla has announced that it is bringing back greatly subsidized financing with 0% and 0.99% APR loans for new Model 3 orders:

Furthermore, buyers who qualify for the federal tax credit for electric vehicles can get a deal for $0 due at signing and 0.99% APR:

$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. Used vehicles and enterprise sales not eligible. 

Tesla is bringing this deal only to Model 3 because Model Y is in a strange situation this quarter amid the change over to the new design.

The automaker is currently only taking orders for the new design for people willing to pay more for the “Launch Edition.” Deliveries are expected to start this weekend, and Tesla is still taking orders for March deliveries.

Tesla is also still taking new orders for the old version of the Model Y at a discount, and the automaker also still has plenty of older Model Y in inventory:

Electrek’s Take

With the end of the quarter coming, on top of the start of deliveries of the new version of the Model Y, I wouldn’t be surprised to see Tesla implement further discounts and incentives on the older version as it still appears to have significant inventory.

As usual in Q1, demand is weaker, but Tesla is having broader brand issues thanks to Musk, and the problem of the Model Y changeover.

Everything points to this being a very tough quarter for Tesla.