Tesla has launched a new financing program in China aimed at lowering upfront costs and monthly payments. The new program comes two weeks after the automaker removed its seven-year financing plan amid tightening lending rules in China.
The new “Easy Loan” service, which went live in China on May 13 and will be available through May 31, 2026, introduces a balloon-style financing structure for the Model 3, Model Y, and Model Y L.
Under the new financing structure, buyers can secure a Tesla with a lower down payment and reduced monthly installments, followed by a larger final payment at the end of the loan term. The approach is designed to reduce the initial financial burden for consumers who may otherwise struggle with higher monthly costs.
For the rear-wheel-drive Model 3, which starts at 235,500 yuan (C$47,500/US$34,600), Tesla is advertising a minimum down payment of 55,900 yuan on a five-year term. Monthly payments can fall as low as 2,193 yuan, with an annual interest rate starting around 0.99%.
Buyers would then make a balloon payment of 45,500 yuan (C$9,200/US$6,700) at the end of the financing period.
Tesla is offering similar terms across the refreshed Model Y lineup, including the larger Model Y L variant, which recently launched in China.
The financing move is notable because it arrives after Tesla reportedly ended its seven-year financing option in China amid tightening lending conditions in the country. Chinese financial institutions have recently become more cautious around long-duration vehicle loans, prompting several automakers to rethink aggressive financing programs.
Rather than extending loan lengths, Tesla appears to be shifting toward a structure that lowers monthly costs without dramatically increasing the financing term.
The company is also bundling additional purchase incentives with the financing offer. Some customers can qualify for discounted paint upgrades, charging-related perks, and insurance subsidies worth up to 8,000 yuan (C$1,600/US$1,200) for eligible Model 3 purchases.
Tesla’s retail sales in China fell nearly 10% year-over-year in April to 25,956 vehicles. However, wholesale deliveries from Giga Shanghai remained strong at 79,478 units thanks to exports. More than 53,000 vehicles built in Shanghai were shipped overseas during the month.
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