Tesla offering new discounts & perks in China amid negative press

Tesla offering new discounts & perks in China amid negative press

Elon Musk-led American electric vehicle maker Tesla Motors is offering new discounts and perks in China, apparently to protect the popularity of its EVs in wake of recent negative press. Over the past few months, the American EV maker has suffered a lot of negative press in China, the world’s largest car market. The Chinese press published reports of crashes involving Tesla cars, protests at the recently-held Shanghai Motor Show, and controversial collection of consumer and other data.

A number of analysts, including Morgan Stanley’s Adam Jonas, described the negative press as “anti-Tesla sentiment,” and warned that it could have a serious risk to Tesla’s business and profit in China.

When asked for a comment, Mr. Jonas said, “How serious is the risk of anti-Tesla sentiment in China going forward? This is a big deal, in our opinion, especially if we look beyond the near-term headlines. Today, Tesla derives a very significant portion of overall profit from its China business.”

Being well aware of the significance of the Chinese car market, Tesla is now offering attractive discounts and new perks to boost the sales of its EVs. On the eve of China’s Labor Day or May Day, Tesla announced new perks like free Enhanced Autopilot for a period of 45 days, free supercharging for 5 days, and a discount of 25 per cent on air filter replacements.

Tesla’s Enhanced Autopilot is no more available in North America, where the company has replaced the software with Full Self-Driving (FSD) package. However, Chinese customers are being provided Enhanced Autopilot since the city street driving feature of FSD isn’t ready to be rolled out in this fast-growing car market.

Free Supercharging is being offered as a perk. However, the American electric car maker is gradually moving away from it as its fleet is growing rapidly, raising demand for charging. Discounted air filter replacement is also an attractive perk in China, where air pollution has become a serious concern.

All the aforementioned discounts and perks have been announced by the EV giant through its official Weibo page in China.

Many investors see the American EV giant the dominant player in the future car market of China. Last quarter, nearly 30 per cent of the company’s revenue came from China. Thus, offering new discounts and perks in the fast-growing Asian market seems to be just indispensible for EV giant.