Electric vehicle leader Tesla Inc (NASDAQ: TSLA) could be betting on 0% interest loans to help boost its delivery figures in China for the fourth quarter as analysts see 2024 deliveries of 1.8 million hittable.
What Happened: After reporting third-quarter financial results that saw revenue miss analyst estimates and earnings per share beat analyst estimates, Tesla could be looking to ensure solid fourth-quarter figures.
The company is extending its 0% interest five-year loan program in China for select vehicles, as reported by Teslarati.
Tesla launched the 0% interest program in April and has extended it several times.
According to the report, the 0% interest loans are good for the Rear-Wheel Drive and Long-Range Dual Motor All-Wheel Drive versions of the Tesla Model 3 and Tesla Model Y vehicles.
Chinese consumers can now lock in the five-year, 0% interest loan through Nov. 30, with the latest extension adding to a previous deadline of Oct. 31.
Tesla's Gigafactory Shanghai produces both the Model 3 and Model Y vehicles in China.
Why It's Important: The electric vehicle market in China is increasingly competitive, with manufacturers looking to undercut rivals in terms of price. Tesla's financing offer could attract new or repeat buyers to the company.
In 2023, Tesla delivered 1,808,581 vehicles, up 38% year-over-year. The company previously said its 2024 delivery would be higher than 2023, but with a lower growth rate year-over-year.
For the company to hit the 1.81 million vehicle figure that some analysts like Wedbush's Daniel Ives views as "hittable," Tesla's fourth-quarter deliveries will need to be impressive.
With financing offers in China, Tesla could be going all-in on ensuring it hits its 2024 forecast. While the 0% interest financing offer is currently extended through November, it would not be a huge surprise to see another extension through the end of the year.
TSLA Price Action: Tesla stock is down 2% to $257.04 on Tuesday, versus a 52-week trading range of $138.80 to $273.54. Tesla stock is up 4.4% year-to-date in 2024.