Tesla offers 0% APR financing on the new Model Y as it raises the AWD version price in China

Tesla may have a new Model Y pricing strategy in the wings, as its Country Director for Australia and New Zealand said that Tesla is "not going to get into price wars" anymore.

"I know we have famously been known for changing our prices rapidly over the past several years," tipped Thom Drew, but "I think we are at a really good point," as the new Model Y is already priced very well and is apparently considered "exceptional value for money."

To say that Tesla has been introducing wild pricing swings in the past few years would be an understatement, as its prices have dropped by more than a third, leaving many who bought at the peak with buyer's remorse.

The tag cutting period may very well be over for Tesla indeed, as, instead of dropping the new Model Y price in China, the market where it launched first, Tesla actually increased it for the AWD trim with the equivalent of $,1380.

That is only for the dual-motor non-Launch Series edition that has been on sale in China since February 26th, though, while the pricing of the cheapest RWD Model Y refresh has remained the same at the equivalent of $36,430.

Tesla usually sells 80% RWD Model Y units there, so the price increase of the more expensive version is unusual, as it already commands a longer, 6-10 weeks delivery window, when compared to demand for the RWD Model Y.

New Model Y RWD gets a 0% APR financing promo

In fact, in order to drum up the new Model Y RWD sales in China, which may not be going according to plan, Tesla has introduced 0% APR financing for the base trim whose lead time is only 2–4 weeks, indicating more tepid demand.

This is the first 0% APR deal for the new 2026 Juniper facelift, and will be available to those who order the cheapest Model Y by April 30.

Raising the price of the AWD Model Y that is in surprisingly higher demand, then introducing 0% APR financing for the traditionally popular RWD trim, can therefore be an attempt to equalize their sales volumes to be more in sync with Tesla's initial production line capacity planning.

The 0% APR offer for a 36-month term is not the only incentive Tesla currently has going in its all-important Chinese market, too, as it also gives a free FSD trial with a purchase, and runs a subsidized insurance promo.

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