Tesla has announced a new incentive for prospective buyers in China, the world’s largest market for electric vehicles (EVs). The company will offer a cash bonus equivalent to nearly $500 to new buyers of its top-selling EVs if they are referred by an existing owner, starting on July 7, 2023.
The cash rebate of 3,500 yuan ($483) will be available to new buyers of Tesla’s Model Y and Model 3 vehicles. Additionally, these new buyers will gain free access to Tesla’s Enhanced Autopilot driver-assistance system for 90 days.
The car buyer can earn:
This move comes as Tesla continues to compete aggressively in China’s EV market. Since the beginning of the year, Tesla has reduced the base price of the Model 3 sedan in China by 14% and the Model Y by 10%. The Model Y is currently Tesla’s global best seller.
The rebate announcement follows Tesla’s commitment, along with 15 other companies including Chinese EV makers Nio, Li Auto, and Xpeng, to avoid “abnormal pricing.” This pledge, organized by the China Association of Automobile Manufacturers, is seen by some as a ceasefire in a price war that has threatened the profitability of the entire industry.
Tesla’s cash rebate announcement was made on its Weibo account and continues an earlier offer from June of 7,000-yuan rebates to buyers of its more expensive Model S and Model X vehicles in China. The rebate appears to be widely available, with many Tesla owners posting their referral codes online for others to use, reports Reuters.
Tesla’s sales in China have been robust, with a record 247,217 China-made vehicles sold in the second quarter. This figure, the highest since Tesla began delivering vehicles from its Shanghai factory in early 2020, accounts for over half of Tesla’s global deliveries.
Despite the slowing gains from price cuts in recent months, Tesla’s shares have climbed almost 70% since early May. Investors are optimistic that global price cuts and U.S. government incentives will boost sales and stabilize Tesla’s profit margin over time.
