Interest rates: Tesla Model Y at 0.99% in the USA vs 7.2% in France

Sign of a slowdown in its sales in the United States, Tesla is launching financing that is 5 to 7 times lower than current interest rates.

Currently, if you buy a Model Y on credit in the United States, Tesla is financing it out of its own pocket. This is essentially the key takeaway from the highly publicized commercial campaign on the other side of the Atlantic.

After the 0% rate in China to stem the erosion of its sales in that market (with little effect since sales in April continued to decline), Tesla is attempting a similar approach in its domestic market. Here, the rate rises to 0.99% and is exclusive to the Model Y, but this indicates a slight sense of panic. Sales must be supported at all costs, even if the cash flow is burdened by Tesla.

Because there are no miracles: Tesla is willing to lose money on cars sold on credit while banks in the United States usually lend at rates between 5 and 7% depending on the clients. The difference, even with banking benefits, will thus come from Tesla’s pocket.

The Model Y Long Range at €619 / month!

The basic Tesla Model Y Long Range no longer exists in the United States. The entry-level model is now the Long Range Propulsion. By applying the same levels of government subsidies on both sides of the Atlantic, it is clear that the price difference is massive compared to France.

With a VAT of 8.75% in California, compared to 20% in France, the Tesla Model Y Long Range comes down to $668 per month on a loan spread over 60 months (5 years). In Euros, this amounts to €619 monthly.

In France, the same configuration and a loan with an APR of 7.22% as proposed by Tesla is displayed at €851 monthly. But as long as the Model Y is selling in France and Europe, why change a winning formula?

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