Tesla China has launched a new financing scheme to attract more budget-conscious buyers after its sales in the world’s largest electric vehicle (EV) market fell behind its domestic rivals.

The US carmaker said on Wednesday that the down payment for a Shanghai-made Model 3 vehicle – priced at 235,500 yuan (US$34,672) – would be slashed to 55,900 yuan from 79,900 yuan if the buyer chose a five-year car loan offered by Tesla.

“Our strong products, combined with attractive incentives for car purchases, will enable Tesla to sustain its robust sales momentum in 2026,” the company said in a statement.

The new incentive for China was announced before the state visit to Beijing by US President Donald Trump, whose entourage for the three-day trip includes Tesla CEO Elon Musk, as well as Nvidia’s Jensen Huang and Tim Cook of Apple.

“I will be asking President Xi, a leader of extraordinary distinction, to ‘open up’ China so that these brilliant people can work their magic,” Trump said in a social media post.

The five-year loan offered by Tesla, with an annualised interest rate of 0.99 per cent, costs 2,193 yuan monthly and ends with a 45,500 yuan final payment at the end of the five-year period.