Tesla in China has introduced bonuses to increase sales of its electric cars

Tesla has begun offering bonuses to boost sales in China, where it is facing increasing pressure from local competitors.

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Customers who buy a Model 3 or Model Y sedan available for delivery by the end of March can receive an insurance subsidy of 8,000 yuan ($1,030). The company will also offer preferential financing plans and discounts on some additional colours.

Although not an official price cut, the insurance subsidy will bring the starting price of the two cars down to 237,900 yuan and 250,000 yuan respectively.

To stem the sales slump, Tesla lowered the starting price of these models in January, prompting similar actions from competitors.

Source: Bloomberg