Tesla changes China’s insurance incentive scheme to encourage purchases

Shanghai/Beijing, November 8 (Reuters) – Tesla Inc. (TSLA.O) said it had raised insurance incentives for car orders in China before Nov. 30, but lowered them for orders next month.

The US automaker previously offered an insurance incentive of 7,000 yuan ($970) for orders placed between October 1 and December 30. However, Tesla announced on Tuesday that his November incentives had been raised to 8,000 yuan, while his December orders were reduced to 4,000 yuan.

“If you like it, get a Tesla now!” Tesla said on its official Weibo account when announcing the policy change.

Insurance incentives are cash rebates offered to purchasers who purchase insurance from Tesla’s partner insurance companies.

According to the China Passenger Vehicle Association last week, Tesla delivered 71,704 Chinese-made electric vehicles (EVs) in October, down 14% from a record high in September.

Tesla also slashed initial prices for its Model 3 and Model Y in China and closed what was its flagship showroom in China last month.

($1 = 7.2403 yuan)

Reported by Zhang Yan and Brenda Goh in Shanghai, Liz Lee and Newsroom in Beijing. Edited by Jacqueline Wong and Tom Hogue

Our criteria: Thomson Reuters Trust Principles.

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