This marks Tesla’s second promotional policy this month, following the launch of its “7-year ultra-low interest” car purchase plan on January 6th. On January 24th, Tesla China launched a limited-time insurance subsidy of 8,000 RMB for the Model 3 Rear-Wheel Drive, Long Range Rear-Wheel Drive, and Long Range All-Wheel Drive versions. The promotion runs until February 28th. This marks Tesla’s second promotional policy this month, following the introduction of a “7-Year Ultra-Low Interest” car purchase plan on January 6th. Combining the promotional policies Tesla has launched, users can enjoy a “combo” purchase plan: direct subsidy + financial incentives + referral rewards. In addition to the 8,000 RMB insurance subsidy, Tesla is also offering a 7-year ultra-low interest loan scheme with an annual fee rate as low as 0.5% (effective annualized interest rate approximately 0.98%). Taking a Model 3 Rear-Wheel Drive version as an example, consumers can start with a down payment of 79,900 RMB, with monthly installments potentially as low as 1,918 RMB, further lowering the barrier to purchase. Furthermore, consumers who purchase through a referral from an existing Tesla owner can receive an additional 8,000 RMB paint selection voucher. Unlike policies involving direct price cuts, lowering the purchase barrier through subsidies and financial policies can reduce the direct impact on brand value and used car residual values. Tesla Model 3 Purchase Page Behind Tesla’s intensive rollout of promotional policies lies the pressure from its 2025 sales performance. Data shows that Tesla delivered approximately 1.636 million vehicles globally in 2025, a year-on-year decrease of about 8.6%. This marks the second consecutive year of declining sales for Tesla. Simultaneously, its annual electric vehicle sales were surpassed by BYD for the first time—BYD sold 2.26 million pure electric vehicles in 2025, a 28% increase year-on-year. In the Chinese market, Tesla is also facing challenges. For the full year 2025, domestic Tesla sales in China were 851,700 units, a 1.7% decrease compared to 916,700 units in 2024. Specifically, the Model 3 sold 312,700 units for the year, a year-on-year decline of 13.12%, while Model Y sales were 539,000 units, down 3.18% year-on-year. Following Tesla’s lead in introducing the “7-Year Low Interest” policy, several other automakers have subsequently followed suit, including Xpeng Motors, Xiaomi Auto, and Li Auto. It is worth mentioning that Tesla CEO Elon Musk recently stated in a media interview that FSD requiring driver supervision might potentially gain approval from European and Chinese regulators as soon as next month. In the face of an overall slowdown in car sales, whether the software business potential unlocked by FSD can open up new growth space remains to be seen.