Tesla to offer cash bonus to new buyers of its EVs in China By Investing.com

On Friday, electric vehicle giant Tesla (NASDAQ:) announced that new buyers of its top-selling electric vehicles in China will receive a cash bonus of nearly $500 if they are referred by an existing owner.

The move, which was announced on its Weibo account, intensifies the competition in the world’s largest market for electric vehicles.

New buyers of Tesla’s Model Y and Model 3 vehicles can receive a cash rebate of 3,500 yuan ($483) by providing a referral from an existing owner. In addition, the Elon Musk-led company said new buyers will gain 90 days of free access to its Enhanced Autopilot driver-assistance system.

Since the beginning of 2023, there has been a price war in China’s EV market, with Tesla cutting the base price of the Model 3 sedan in China by 14% and by 10% for the Model Y.

The rebate announcement comes a day after Tesla joined 15 other electric vehicle companies in China, pledging to avoid “abnormal pricing,” a move organized by the China Association of Automobile Manufacturers.

Tesla shares are down around 0.1% Friday at the time of writing, although the stock has gained more than 132% in 2023.