Tesla removed its seven-year low-interest loan option for Chinese car buyers in May. The company originally introduced the incentive in January to stimulate sales growth. Purchasing policies now limit financing plans to a maximum of five years.
Tesla still offers zero-interest options for specific vehicle models. Chinese financial institutions are reportedly reducing risk exposure to ultra-long-term auto lending. Local competitors had previously matched Tesla’s seven-year loan terms to remain competitive.
The credit tightening may reduce vehicle affordability and slow sales momentum across China. Tesla’s policy shift directly reacts to the broader tightening of auto credit by national banks.