Tesla’s Global Sales Plummet, Offers $1100 Insurance Subsidy in China
Beijing (Reuters) – Tesla is introducing an insurance subsidy for its Model 3 buyers in China as it grapples with slowing global sales and increasing competition in key markets. The U.S.-based electric vehicle (EV) manufacturer announced that customers who purchase a Model 3 before March 17 will receive an 8,000 yuan ($1,101.90) insurance incentive.
The move comes as Tesla faces declining sales across major international markets. In Germany, the company recorded a staggering 76% drop in sales last month, with year-to-date sales down 71%. Similarly, France has seen a 44% decline in Tesla registrations. Analysts attribute the slump to several factors, including CEO Elon Musk’s controversial political stances, rising competition from domestic EV manufacturers, and temporary production slowdowns caused by factory upgrades.
Despite challenges in Europe, Tesla experienced an 11% increase in registrations in the UK during the first two months of 2025, indicating some resilience in specific markets. However, the broader downward trend has raised concerns about Tesla’s ability to maintain its market dominance amid shifting consumer preferences and intensifying competition.