Tesla (NASDAQ:TSLA) is offering more incentives to buyers for its Model Y. According to the company’s website, the EV giant is now offering a 0.99% annual percentage rate (APR) on eligible purchases of the new Model Y, a significant decrease from 6.49% just a week ago. In contrast, the APR rate for the Model 3 remains at 6.49%.
The APR indicates the total cost of financing for the purchase of the car, which may vary among lenders due to their fees and rate-setting methods. Tesla is offering this deal from May 10 to May 31, providing financing at a lower, below-market rate. The Model Y is the company’s best-selling vehicle, with sales of 96,729 units in Q1, up by 1% year-over-year.
Why is TSLA Offering the New Deal?
This offer by TSLA could be a bid by the company to increase EV sales amid slowing demand for its vehicles. Since late 2022, the company has been on a price-cutting spree to boost sales amidst rising competition and market saturation in the high-end EV segment.
The company’s vehicle deliveries declined by 9% year-over-year to around 387,000 units in the first quarter. Additionally, TSLA’s sales decreased by 8.5% year-over-year to $21.31 billion.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on eight Buys, 15 Holds, and nine Sells. Year-to-date, TSLA has declined by more than 25%, and the average TSLA price target of $173.29 implies that TSLA stock is priced in from current levels.
