Tesla has been facing criticism for its subpar delivery numbers in the first quarter, largely due to the transition to the new Model Y across its factories worldwide. Critics have been quick to declare that Tesla is on the decline. However, the company seems determined to prove them wrong with a series of promotions aimed at boosting sales.
One of the promotions recently announced by Tesla is a free Full Self-Driving (FSD) transfer program for customers in North America. This program is designed to incentivize longtime Tesla owners with FSD to upgrade to a newer model. Additionally, Tesla is offering a 0% APR financing program for new Model 3 orders in the United States, with added incentives for the Model 3 Performance variant. Customers of classic Model Y units are also eligible for a $2,000 discount on a new Model Y, while Cybertruck customers can benefit from special leasing rates.
In China, Tesla has introduced a five-year, zero-interest financing program for the new Model Y, similar to the program offered for the Model 3 sedan. These strategic promotions are aimed at boosting sales in two of Tesla’s largest markets, the United States and China, to ensure healthy delivery numbers in the second quarter.
The aggressive promotions come at a time when critics are once again questioning Tesla’s demand issues, despite the Model Y being the best-selling car by volume for the second year in a row. By posting strong delivery numbers in Q2, Tesla hopes to take control of the narrative surrounding its demand issues.
A successful second quarter could also help to renew faith among investors in CEO Elon Musk’s leadership. Musk recently announced that he would be spending more time at Tesla starting in May, indicating a more hands-on approach to the company. With Musk’s aggressive leadership style, Tesla could potentially reach new heights before the end of June 2025.
Overall, Tesla’s promotional efforts and Musk’s renewed focus on the company suggest that the electric vehicle maker is determined to overcome challenges and emerge stronger in the coming months. By addressing demand issues and pushing for increased sales, Tesla is positioning itself for success in the competitive electric vehicle market.