Tesla launches 0.99% Model Y Premium APR financing deal amid 17% January sales slump

Faced with an unprecedented sales slump and its first annual drop in revenue after the federal tax credit expired last year, Tesla is speeding up its own incentives program to try and turn its fortunes around.

In January, Tesla shipped 17% fewer vehicles in the US compared to the same period last year. The EV maker is now introducing an APR financing deal for its bestselling Model Y vehicle to try and shake things up before it has to report another tepid quarter and endanger its sky-high stock valuation.

Model Y Premium APR financing deal

When Tesla saw that the cheapest Model Y Standard RWD version wasn't selling as well as it hoped, it started offering it with zero APR financing back in December. This didn't move the needle much in terms of holiday sales, despite the price difference, as people simply didn't buy the neutered Model Y Standard lacking more than 20 features compared to its Premium brethren, not to mention its much shorter range on a charge.

Tesla then introduced an AWD Model Y that is $7,000 more affordable than its long-range Premium equivalent and is now selling no fewer than five different Model Y trims in the US.

The jury, however, is still out on the sales of that one, as Tesla just sabotaged it somewhat by offering a 0.99% APR financing for the Premium RWD and Premium AWD trims, down from 2.99%. The new Model Y Premium financing deal is for all but the 84-month term that stays with the over 6% APR rate.

With the fresh Model Y APR financing promo, one can now get the Premium AWD trim for $674/month after a $3,300 down payment at the longest 72-month term that enjoys a 0.99% rate. For comparison, the cheapest AWD version asks for $557/month at its zero interest rate financing rate, so making the Premium Model Y way more affordable may be a double-edged sword when it comes to the sales of the base trims.

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