Tesla introduced this week new low-interest financing promotions for its Model 3 and Model Y vehicles in the United States, following last month’s continuation of its domestic sales decline.
The US giant announced the latest offers in the country via an email sent to customers.
When purchasing a new Model 3 mid-size sedan, buyers qualify for a 0.99% financing rate across all of its variants: Rear-Wheel Drive (RWD), Premium RWD, Premium All-Wheel Drive (AWD), and Performance.
The last trim is usually excluded from these kinds of promotions. The previous APR offer on the Model 3 was 2.99%.
However, when buying the crossover SUV’s RWD (formerly Standard) and AWD variants, US customers can secure 0% financing.
The Model Y Performance is excluded from the offer.
The low-interest financing promotions are available for loan terms up to 72 months — equivalent to six years.
Tesla‘s sub-1% financing effectively shifts interest costs to the company as it seeks to sustain demand amid competition from traditional and new EV brands.
Last March, the firm had already implemented 0% and 0.99% APR financing to the Model 3 in the US, with buyers who qualified for the EV federal tax credit — which ended last September — being able to get $0 due at signing and 0.99% APR for a term of 60 months.
US Sales
Last month, Tesla sold an estimated 40,100 vehicles in the US — 11,227 cars and 28,873 trucks —, according to data published by Motor Intelligence.
Sales fell by 17.3% from the 48,500 registrations in January 2025, marking the fourth consecutive month of year over year delivery decline in the country.
Compared to last December, when the Elon Musk-led company registered 48,300 EVs, January’s figures dropped by 17.0%.
In January, the pattern was consistent with the seasonal slowdown that typically hits the auto industry at the start of each year.
Cox Automotive data put 2025 Tesla Model 3 sales at 192,440 units and Model Y sales at 357,528 units, making them the second and first best-selling electric vehicles in the country, respectively.
The figures represented a 9.2% drop compared to 2024, when the firm listed 625,712 units in the country.
Tesla‘s domestic sales have declined year-on-year in nine of the past twelve months, with the largest drop occurring last October: 23.6% to 40,650 units.
It was closely followed by November, when the Texas-headquartered firm saw its registrations fall by 22.7% to 39,800 — the lowest result of 2025.
Last year, only July, August, and September posted growth in domestic sales, with 1.5%, 4.4%, and 4.8% increases, respectively, compared to the corresponding 2024 months.
Financing Offer in China
The US incentives follow a similar playbook Tesla deployed in China earlier this year.
On January 6, Tesla applied in China a seven-year low-interest financing incentive to the Model 3, Model Y – which led Chinese 2025 sales across all powertrains – and the market-exclusive Model Y L.
Until the end of January, customers were able to save up to 33,479 yuan ($4,800) by purchasing the fully electric sedan and SUV for a minimum of 79,900 yuan ($11,600).
The six-seat Model Y L variant could be acquired for as low as 99,900 yuan — equivalent to $14,500.
The financing offer was matched by Xiaomi the week after, followed by other Chinese companies, including Li Auto, Dongfeng‘s sub-brand Yipai, Geely‘s Galaxy brand, and Xiaomi.
