Benzinga - by Chris Katje, Benzinga Staff Writer.
Leading electric vehicle company Tesla Inc (NASDAQ:TSLA) is offering a new financing incentive for customers on the Model Y, joining the recent promotional offers on the bestselling vehicle.
What Happened: As Tesla addresses concerns about electric vehicle demand, the company has introduced a new financing offer on its website.
According to the company's website, consumers can purchase a Model Y at 0.99% APR financing for a limited time.
The offer is good from May 10 through May 31 according to the website.
With $13,500 in savings on the Model Y, the price is listed at $399 per month for the Model Y Long Range Rear-Wheel Drive model.
The financing rate is good for up to 72 months with $4,250 down and for qualified U.S. customers.
With federal tax credits and 5-year estimated gas savings, the Rear-Wheel Drive Model Y is listed at a starting price of $31,490 and the All-Wheel Drive is listed at $34,490.
Without the credits, the starting price for the Rear-Wheel Drive Model Y is $44,990 and the All-Wheel Drive version is $47,990.
Related Link: Tesla Q1 Earnings Highlights: EV Giant Misses Wall Street Estimates, Makes Cost Cuts, Invests In AI, Speeds Launch Of New Models
Why It's Important: The new financing offer comes as many consumers are seeing higher rates when trying to buy a new vehicle.
The nearly one-month-long deal from Tesla, offered during the middle of its second quarter, aims to boost demand for the Model Y.
The Model Y was the bestselling vehicle in 2023 globally and is the top-selling electric vehicle of all time.
Tesla fell short of Wall Street’s consensus estimates for first quarter deliveries. The latest financing offer, following several previous deals, may be intended to enhance second-quarter figures.
The electric vehicle company previously said that its 2024 vehicle growth rate would be "notably lower" than the 2023 growth rate.
TSLA Price Action: Tesla shares are up 2% to $172.39 on Monday versus a 52-week trading range of $138.80 to $299.29.
Read Next: 8 Tesla Analysts Size Up Next-Gen Vehicles, FSD, AI And More: ‘Potential To Be A Transformational Technology Company, Deliver Outsized Returns’
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