Tesla Inc is continuing to try and prop up demand in China, offering a new raft of incentives to encourage buyers to purchase new vehicles now.
The electric vehicle maker’s new incentives in China will offer new buyers as much as 10,000 yuan ($1,450) back on Model 3 sedans and Model Y sport utility vehicles, if buyers take delivery by February 28th, according to the new offer on Tesla’s website.
The company is also extending a 6,000 yuan subsidy which it initially offered in early December, as well as another 4,000 yuan subsidy which it offered on purchasing insurance through Tesla, which was first offered in November.
Shares of Tesla plunged 37% in December off fears of lagging demand in China, producing the worst month for the electric vehicle maker in what has proven the stock’s worst-ever year.
While analysts are projecting the company will announce record-breaking quarterly deliveries in January, the company has already ruled out the possibility of meeting its previously stated objective to grow by 50% for the year.
Tesla has also been discounting its US offerings, as it sought to close out the year on a strong note. The company initially offered a $7,500 discount on its Model 3 and Model Y, and then went on to extend the offer to its more expensive Model S and Model X.
For their part investors have viewed these offers with trepidation, as potential signs demand is lagging, and the company is having trouble making sales. It has exacerbated fears which have plagued the company this year, from worries CEO Elon Musk has been distracted with his Twitter acquisition, to fears he may damage the brand with controversies brewing at the social media giant over issues like hate speech and censorship. In addition, to finance his acquisition, Musk went on a stock-selling spree, liquidating almost $40 billion worth of Tesla shares since late last year, which also was not beneficial for share prices.
Those fears have compounded fears over a potential global economic slowdown brewing as central banks across the globe seek to cool economies as a means of getting control over rampant inflation, and the effects that may have on global demand for the electric vehicle maker’s signature products.
