Tesla has launched fresh incentives for the Model 3 sedan, coming as the automaker aims to ramp up deliveries as part of its end-of-quarter push.

With just a few weeks left in the first quarter of year, Tesla is now offering three separate incentives for all Model 3 trims in the U.S., including zero-percent APR financing, $0 due at signing, and 60-month terms. The promos were announced on social media and they’re currently also detailed on the company’s order configurator for the electric vehicle (EV).

Credit: Tesla

Tesla North America announces a new set of incentives for the reengineered Model 3 sedan.🇺🇸

✅0% APR for all Model 3 trims
✅$0 due at signing
✅60 month terms

Not bad at all for one of the best bang-for-the-buck vehicles, electric or otherwise, in the market today. pic.twitter.com/3vM7Ioo2lV

— TESLARATI (@Teslarati) March 4, 2025

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To qualify for the zero-percent APR deal in the U.S., buyers must put a down payment of at least 15 percent down, though Tesla also says the federal tax credit can go toward this if eligible. The $0 due at signing deal comes at a 0.99 percent APR with the use of the tax credit, and both of the deals come with 60-month terms.

At the time of writing, the $7,500 federal tax credit is also still available for all three Model 3 trims, amidst some speculation around whether or not the Trump administration could do away with the government incentive. Tesla’s website does not currently show the incentive on the order configurator in Canada, though the company is still offering a 0.99-percent APR deal on orders placed before March 7. On the Mexico order configurator, neither of these promotions are currently available.

It’s common for Tesla to push additional promos at the end of each quarter, and especially at the end of the year, to try to boost delivery numbers that will be included with quarterly data. The news also comes after Tesla began deliveries of the Model Y refresh in the U.S. earlier this week, after first deliveries of the Gigafactory Shanghai-built SUV started going out last week.

Tesla originally launched the refreshed Model 3 last January, a few months after the redesigned sedan became available in the Asia-Pacific and Europe-Middle East markets. Not unlike the recently launched Model Y, the Model 3 “Highland” came with a number of interior and exterior upgrades in two configurations, before Tesla launched the highly-anticipated Performance trim in May.

Tesla’s sales of China-made electric vehicles dropped sharply in February, with the U.S. automaker selling 30,688 units wholesale, a 51.47% decline from January’s 63,238 and a 49.16% slide from the 60,365 vehicles that were sold wholesale in February 2024. 

Tesla China’s February 2025 results were reflected in data from the China Passenger Car Association (CPCA).

Tesla China’s 2025 sales:

Tesla China’s February 2025 wholesale figures come amidst the company’s transition to the new Model Y, an update to its strongest seller in the country. In the lead-up to the first deliveries of the new Model Y in late February, Tesla China likely cleared out its inventory of Model Y classic units, throttling sales of the all-electric crossover during the month.

Combined January-February 2025 sales for Tesla China currently stand at 93,926 units wholesale, as per a CNEV Post report. These represent a 28.74% decline from the 131,812 units sold wholesale in 2024’s first two months.

The new Model Y:

Tesla China introduced the new Model Y on January 10. At the time, Tesla China listed the revamped all-electric crossover’s first deliveries as sometime in March 2025. Deliveries of the new Model Y ultimately started on February 26, 2025.

The new Tesla Model Y offers a number of improvements compared to its predecessor, from an updated exterior that gives the vehicle a more aggressive look to an interior that addresses most of the complaints about the Model Y classic’s cabin. Upgrades include an updated suspension system and better sound isolation, which improve the new Model Y’s ride quality.

Previous reports:

A previous report from Bloomberg News back in January claimed that Tesla China will be pausing some of Giga Shanghai’s Model Y lines from January 22 to February 14 to optimize production equipment for the updated all-electric crossover. The publication also claimed that the facility’s Model 3 lines will be paused from January 26 to February 3 as well.

Considering that the Model Y is Tesla’s strongest seller in China, it would be interesting to see just how successful the vehicle will be in the country’s domestic market this year.

Stella Li, executive vice president of China’s leading electric vehicle maker BYD, noted that the Chinese automaker is willing to work with Tesla to battle combustion-powered cars.

The executive’s comments came as BYD and Tesla vie for supremacy in the global EV market, with both companies pushing aggressive innovation to capture consumer demand.

BYD exec’s comments:

Speaking to the Financial Times at a BYD showroom in London, Li noted that BYD would “work together” with Tesla to combat ICE vehicles. “Our common enemy is the internal combustion engine car. We need to work together… to make the industry change,” she stated.

She also stated that Beijing is “more open” to sharing innovations with foreign companies, even if there are rising trade tensions in Europe and the United States. “(The) Chinese government is more open, so maybe there is a lot of wrong perception here,” she noted.

China’s EV adoption:

Li emphasized the strength of China’s EV adoption as a model for the industry. She also expressed some confidence amidst the apparent slowdown in the global EV sector. 

“Why are people still choosing the EV? Because it’s a better car, a smarter car… and it’s higher quality,” she stated.

Autonomous driving efforts:

BYD and Tesla’s efforts to make headway into the EV sector is highlighted by the two companies’ efforts to roll out a dedicated autonomous driving system to its domestic vehicles in China. Last month, BYD announced its “God’s Eye” self-driving system across most of its models in China at no additional cost.

Tesla, for its part, has pushed its first vision-based Full Self-Driving (FSD) features to the Chinese market. Early reviews of Tesla’s FSD features in China have been positive, with numerous users praising the system for its capability to traverse public roads without much issues.