Tesla Tests a New Sales Technique in China

Faced with the collapse of its sales in China, due to overly high pricing, Tesla is reassessing its business strategy.

Ultimately, Tesla is just another car manufacturer, with challenges in pleasing its customers. The hype has faded, both among customers and financial analysts. This was to be expected, and one shouldn’t be surprised. A company cannot have infinite growth. Sooner or later, complications arise.

However, Tesla may not have anticipated navigating such a downturn in China. The reasons are manifold: economic crisis in China, fierce competition with local manufacturers who are much cheaper and just as relevant in the electric sector… and above all, a Sino-American rivalry tinged with patriotism. Chinese consumers are increasingly discouraged from purchasing Teslas. Tesla is responding by laying off thousands of employees, particularly at the Shanghai factory…

More down payment, the good plan?

In an effort to stem the collapse of its sales in the Middle Empire, Tesla is attempting a new business approach: selling its cars without a down payment. This is revolutionary for such a high-end segment in China. Only the Model 3 and Model Y already available in stock are included in this offer. Does this indicate that something is brewing behind the scenes regarding the Model Y?

An evolution has long been awaited to reposition it at the center of the game. Its features are starting to feel outdated, especially compared to the very successful refreshed Model 3 launched in the fall of 2023. Sold this way, the Tesla Model 3 and Model Y also see their prices for Long-Term Leasing adjusted. One should expect to pay around 565 euros monthly for either, a relatively high price compared to the average salary in China, which is 1300 euros.

Will this solution soon arrive in Europe and the United States? There is a very high likelihood, as the idea is no longer taboo among competitors.

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