<div id="readability-page-1"><blockquote><ul><li>This marks Tesla's second extension of its 7-year low-interest financing plan this year, following its unconventional launch of the promotion on January 6.</li><li>More than ten automakers, including BYD, Nio, Xpeng, and Geely, have followed suit.</li></ul></blockquote><figure id="attachment_136820"><img src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/02/2026022602161750.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1600" height="900" original-src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/02/2026022602161750.jpg"/><figcaption id="caption-attachment-136820">(File photo shows a Tesla Model Y. Image credit: CnEVPost)</figcaption></figure><p>Tesla (NASDAQ: TSLA) has again extended its ultra-long-term car loan program in China, as it faces mounting sales pressure in the world's largest electric vehicle (EV) market.</p><p>Tesla China announced Thursday that it has further extended the validity period of its 7-year ultra-low-interest and 5-year interest-free financing programs until March 31.</p><p>This marks the company's second extension of the policy this year. Tesla initially launched the unconventional program on January 6 to offset rising costs stemming from China's planned 5% new energy vehicle (NEV) purchase tax effective in 2026.</p>    <div>        <p><span>Join us on </span>            Telegram            <span> or </span>            Google News        </p>    </div><p>Originally set to expire at the end of January, Tesla extended the promotion to late February on January 24.</p><p>The repeated extensions of this promotional policy reflect Tesla's challenges in China.</p><p>Tesla's 2025 retail sales in China totaled 625,698 units, marking a 4.78% year-on-year decline, according to data compiled by CnEVPost.</p>                    <div>        <p>Tesla monthly retail sales in China</p>                <p><span>                <span></span>                2024            </span>                        <span>                <span></span>                2025            </span>                        <span>                <span></span>                2026            </span>                    </p>                                                    </div>            <p>Entering 2026, the status of its flagship model has further eroded — in January, the Model Y lost its position as China's top-selling EV to Xiaomi (HKG: 1810, OTCMKTS: XIACY) YU7.</p><p>In response to Tesla's aggressive financing promotions, China's largest NEV maker BYD officially entered the fray on Wednesday.</p><p>BYD's Ocean lineup and personalized sub-brand Fang Cheng Bao announced a 7-year low-interest financing plan valid through March 31.</p><p>Before BYD's move, competitors including Nio Inc (NYSE: NIO, HKG: 9866), Li Auto (NASDAQ: LI, HKG: 2015), Xpeng (NYSE: XPEV, HKG: 9868), and Geely Auto (HKG: 0175, OTCMKTS: GELYF) had already rolled out similar extended-term loan policies.</p><p>With Chinese regulators discouraging direct and destructive price wars, automakers are intensively shifting toward more lenient auto consumer finance policies.</p>    <div>        <div>            <p><img width="768" height="431" src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/02/2026022410274148-768x431.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://cdn.cnevpost.com/wp-content/uploads/2026/02/2026022410274148-768x431.jpg"/>                            </p>        </div>        <div>            <p>BYD's Jan new car registrations in Europe surge 165%, once again surpassing Tesla</p>            <p>BYD's new car registrations in Europe reached 18,242 units in January, higher than Tesla's 8,075 units.</p>                    </div>    </div>                                                                                    </div>

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<p>Tesla has extended its 7-year low-interest financing plan in China until March 31, marking its second extension this year amid increasing sales pressure. This move follows a similar strategy adopted by over ten competitors, including BYD and Nio, as they respond to the competitive landscape in the electric vehicle market. Tesla's retail sales in China have declined by 4.78% year-on-year, and its Model Y has lost its top-selling position to Xiaomi's YU7. Automakers are shifting towards more flexible financing options instead of engaging in price wars.</p>

- Tesla has extended its 7-year low-interest financing plan in China until March 31, amid sales pressure in the electric vehicle market.  
- This follows earlier extensions and is part of a strategy to counter rising costs associated with a new energy vehicle tax set for 2026.  
- Competitors, including BYD and Nio, have also introduced similar financing options, reflecting a shift away from price wars to more lenient financing policies.

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Tesla extends 7-year car loans in China again as over 10 EV makers join price war alternative