Tesla has introduced a 1.99% APR financing offer for the newly refreshed Model Y in the U.S., marking a significant move to stimulate demand for its flagship electric SUV. This promotion, available to well-qualified buyers, effectively reduces the vehicle’s cost by several thousand dollars, depending on loan terms and credit qualifications. The offer applies across the Model Y lineup, including the Long Range RWD, Long Range AWD, and Performance variants, and is valid for financing plans up to 72 months .
This incentive follows a recent $2,000 discount offered to early EV buyers, indicating Tesla’s efforts to address softer-than-expected demand for the updated model. Despite the Model Y’s 2025 refresh—codenamed “Juniper”—which includes design enhancements and new features, the U.S. market response has been tepid. Reports suggest that inventory levels remain high, and delivery times are notably short, sometimes even same-day, highlighting the urgency to boost sales .
Tesla’s first-quarter 2025 performance has been challenging, with a 9% decline in revenue year over year and a 71% drop in earnings per share. While the company attributed some of the downturn to the Model Y’s production changeover, analysts point to broader issues, including increased competition and shifting consumer perceptions. In response, Tesla has also offered 0% financing in markets like Europe and China, where demand has softened even more significantly.
The 1.99% APR financing offer is part of Tesla’s broader strategy to reinvigorate sales and maintain its position in the competitive EV market. As the company navigates these challenges, potential buyers may find this an opportune moment to consider the Model Y, especially with the added financial incentives.
