Tesla Extends 1.99% Financing Offer on Model 3 and Model Y

Tesla has made a significant move in the electric vehicle (EV) market by extending its attractive financing offer on two of its most popular models. According to a tweet by Sawyer Merritt, a well-known Tesla observer, the automaker has removed the order deadline for its 1.99% financing rate on new Model 3 and Model Y orders in the United States.

Extended Deadline, Same Delivery Requirement

Previously, customers had until August 30th to place their orders to qualify for the promotional rate. However, Tesla has now lifted this restriction, allowing more potential buyers to take advantage of the offer. It’s important to note that while the order deadline has been removed, customers still need to take delivery of their vehicles by September 30th to benefit from the 1.99% rate.

Competitive Financing in a High-Rate Environment

This financing deal is particularly appealing in the current economic climate, where interest rates are generally higher. The 1.99% APR is significantly lower than the average auto loan rates in the U.S., which typically hover around 5-6%. This move by Tesla could make their EVs more financially accessible to a broader range of consumers.

Model Y Spotlight

The tweet included an image of a blue Model Y, highlighting its eligibility for the financing deal. The Model Y, Tesla’s compact SUV, has been a popular choice among EV buyers. With this financing offer, it becomes an even more attractive option for those looking to enter the electric vehicle market.

Market Strategy

This extension of the financing offer appears to be part of Tesla’s strategy to maintain strong sales momentum. By making their vehicles more affordable through attractive financing, Tesla is likely aiming to capture a larger market share in the competitive EV landscape.

EVXL’s Take

This move by Tesla underscores the growing competition in the EV market and the importance of financial incentives in driving adoption. As we’ve seen in recent articles on EVXL’s Tesla coverage, the company continues to innovate not just in technology but also in its approach to sales and financing. This extended offer could potentially accelerate the shift towards electric vehicles, especially among consumers who were on the fence due to financial considerations. It will be interesting to see how other EV manufacturers respond to Tesla’s aggressive financing strategy in the coming months.

Photo courtesy of Tesla​​​​​​​​​​​​​​​​