Elon Musk, head of EV giant Tesla (TSLA), has sanctioned a new loan scheme to drive up demand for its cars in China just as he steps off the plane in Beijing with President Trump.
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Prices are Slashed
Tesla is offering a new financing program called “Easy Loan” for its locally made Model 3, Model Y and Y L units. It is available to consumers who complete the purchase by May 31, 2026.
The scheme is offering lower down payments and lower monthly payments to buyers, with an annualized interest rate at 0.92% and a new lump-sum payment due at the end of the loan.
Tesla China said that the down payment for a Shanghai manufactured Model 3 vehicle would be slashed to 55,900 yuan from 79,900 yuan if the wannabe buyer chooses its five-year car loan plan.
“Our strong products, combined with attractive incentives for car purchases, will enable Tesla to sustain its robust sales momentum in 2026,” the company said in a statement.
No Longer a Chinese Leader
Despite that confident statement the move came after Tesla dramatically dropped out of the top ranks of EV companies in the Chinese domestic market because of falling retail sales in April.
According to the China Passenger Car Association, the top five EV makers in China are now BYD (BYDDY), Geely (GELYF), Changan, Stellantis (STLA)-backed Leapmotor and Xiaomi (XIACF).
BYD’s sales stood at 182,025 units in April, representing a 32.3% year over decline, the report said. Tesla’s retail sales fell to over 25,956 units, marking a 9% year-over-year decline, but down more than 50% when compared to March. However, Tesla was fifth in terms of total sales from January to April 2026 with 138,754 units.
It comes as Musk and other business titans accompany Trump on his two-day visit to China to meet President Xi Jinping. It is understood that the American car market and Chinese investments in that sector could be on the agenda.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 12 Buy, 12 Hold and 5 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $403.86, implying a 9.79% downside.
