The leader of electric vehicles, Tesla Inc (NASDAQ:TSLA), could be betting on offering interest-free loans to help improve its China delivery numbers in the fourth quarter, as analysts see 2024 deliveries of 1.8 million are feasible.
What happened
After presenting the third quarter financial results that showed a lack of revenue compared to analyst estimates and earnings per share that exceeded analyst estimates, Tesla could be looking to secure strong numbers in the fourth quarter.
The company will expand its Chinese loan program to five years and 0% interest for certain vehicles, such as inform Teslarati.
Tesla launched the program without interest in April and has expanded several times.
According to the report, the 0% interest loans are valid for the rear-wheel drive, Long-Range Dual Motor All-Wheel Drive versions of the Tesla Model 3 and Tesla Model Y vehicles.
Chinese consumers can now secure the five-year, 0% interest loan until November 30, with the latest extension added to an earlier deadline of October 31.
Tesla’s Shanghai Gigafactory produces the Model 3 and Model Y vehicles in China.
Why is it important
The electric vehicle market in China is increasingly competitive, with manufacturers looking to outperform their rivals in terms of price. Tesla’s financing offer could attract new buyers or those who repeat with the company.
In 2023, Tesla delivered 1,808,581 vehicles, 38% more than the previous year. The company previously said its deliveries in 2024 would be higher than in 2023, but at a lower annual growth rate.
For the company to reach the 1.81 million vehicle figure that some analysts, such as Wedbush’s Daniel Ives, consider feasible, Tesla’s fourth-quarter deliveries will have to be impressive.
With financing offers in China, Tesla could be ensuring that it hits its 2024 forecast. Although the 0% interest financing offer is currently extended through November, it wouldn’t be a big surprise to see another extension until the end of the year.
You can also read: Gary Black projects a $600 price target for Tesla in 2030 driven by better earnings
Receive exclusive news 30 minutes before other traders
The 14 day free trial Benzinga Pro gives you access to exclusive news so you can trade before millions of other investors. Start your 14-day free trial by doing CLICK HERE.
For more updates on this topic, turn on notifications Benzinga España o follow us on our social networks: X y Facebook.
