Tesla has adjusted its strategy in China, increasing the price of the new Model Y Long Range while at the same time rolling out financing incentives for the entry level Rear-Wheel Drive (RWD) variant.
Model Y Price Increase
According to an update to the online configurator in China, Tesla has raised the price of the new Model Y Long Range by ¥10,000 (C$1.980/US$1,380), about a 3.3% increase, giving it a new starting price of ¥313,500 (C62,000/US$43,340).
With extended delivery wait times of 6-10 weeks for the Long Range variant, this price hike likely points to strong demand for the model.
0% Interest Incentive for Model Y RWD
While increasing the price of the Long Range model due to high demand, Tesla is offering new financing incentives for the entry-level Model Y RWD.
According to a post from the official Tesla account on the Chinese social media site Weibo, customers who purchase the RWD variant between March 18 and April 30, 2025 can get up to three years of 0% interest or a five-year low-interest financing plan, provided they take delivery before the order deadline.
- Option 1: 0% interest for 1-3 years with a minimum down payment of ¥79,900 (C$15,800/US$11,000)
- Option 2: Low-interest financing (starting at 1.84%) for 1-5 years, with a lower down payment of ¥45,900 (C$9,080/US$6,300).
- Monthly payments for the Model Y RWD can be as low as ¥3,808 (C$750/US$525) under the low-interest plan.
These incentives suggest that Tesla is looking to stimulate demand for the RWD model, which currently has a shorter delivery wait time of 2-4 weeks compared to the Long Range version.
Balancing Demand
Tesla’s pricing and financing moves appear to be a response to shifting demand. According to local reports, Tesla has amassed around 200,000 orders for the updated Model Y since its launch. Based on the current order wait time times, it appears a higher percentage of customers are opting for the Long Range AWD version, leaving Tesla with a potential imbalance in its order book.
By raising the price of the Long Range model and offering financing incentives for the RWD version, Tesla may be attempting to steer more customers toward the lower-priced variant to balance production and delivery schedules.
Tesla has been actively adjusting its sales strategy in China, including offering insurance subsidies for the Model 3 and also 0% interest financing. There have also been recent reports that Tesla plans to introduce a lower-priced Model Y variant later this year, internally codenamed “E41”, which could launch in 2026.
