Tesla aims to jumpstart Model Y sales with new incentives to attract US buyers

Tesla
has had a

challenging year
so far, and to boost the sales of one of its latest

Model Y
trims, the automaker is offering new purchase incentives.

For well-qualified buyers, Tesla is now offering 1.99 percent APR financing or $0 due at signing for the Long Range All-Wheel Drive (AWD) trim of its new Model Y.

This is the first time a deal like this has been available for the new Model Y in the US, coming just a month after the AWD trim first became available to order.

Related

Tesla’s cheaper Model Y is doomed no matter what

It feels like Tesla is thrashing in the water more than responding to customers.

The new Model Y is eligible for a federal tax credit

A 15 percent down payment is required for 1.99 percent APR financing

Tesla

The Long Range AWD trim of the new Model Y starts at $48,990. Luckily, it is eligible for a federal tax credit in the US amounting to $7,500, which helps bring the cost of the electric SUV down to $41,490. By taking advantage of Tesla’s new 1.99 percent APR incentive, you could save a couple of thousand dollars in the long run. Alternatively, you can choose the $0 due at signing option. However, this comes with a higher APR percentage, which may not be worth it.

To qualify for the 1.99 percent APR financing promotional rate, US buyers must make a down payment of at least 15 percent. According to Tesla, the $7,500 federal tax credit can be applied toward the down payment on the car. Delivery estimates for the Long Range AWD Model Y are one to three weeks. Full terms and conditions can be found on Tesla’s website.

It’s interesting to see Tesla launch a financial incentive for this Model Y trim so soon after its release. As Electrek notes, this could indicate soft demand for the new Model Y in the US. In 2024, the Model Y was the best-selling electric vehicle in the US, and if Tesla’s first quarter results are any indication, the company is struggling to sell vehicles at a pace it once maintained.

If the Long Range AWD Model Y doesn’t interest you, Tesla has just launched a more affordable trim: the Long Range Rear-Wheel Drive (RWD) Model Y. It starts at $44,990, or $37,490, after considering the $7,500 federal tax credit. However, there are no incentives or promotional rates available for the new trim yet.

Related

Tesla drops more affordable Cybertruck and refreshed Model Y to woo buyers

The latest Cybertruck model from Tesla offers an extended range at a lower price, and the new Model Y is now available at a cheaper price.