Tesla, Xiaomi vie for Chinese EV buyers with cheaper, longer loans

South China Morning PostCenter-RightEN 1 min read 100% complete by Daniel RenFebruary 4, 2026 at 04:32 AM

AI Summary

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Tesla initiated a trend of low-interest, long-term car loans in mainland China to boost EV sales amid a challenging market with rising raw material costs and reduced government incentives. Tesla's seven-year loan option with a 1.36% annual interest rate prompted competitors like Nio, Xpeng, and Xiaomi to offer similar financing deals. This move aims to attract buyers without resorting to price cuts that would further erode profit margins. The increased competition in car financing comes as EV makers face a dilemma of balancing profitability with weak market demand. While these incentives may attract some buyers, it is uncertain if they will significantly increase deliveries.

Key Entities & Roles

Key Player Opposition Context

Model Y 40% Model 3 40% Shanghai Mingliang Auto Service 50% Chen Jinzhu 60% Nio 60% Xpeng ×270% Xiaomi ×270% Tesla ×490% China ×390%

Keywords

electric vehicles 90% low-interest loans 80% tesla 80% ev sales 80% car financing 70% china 70% price cuts 60% raw-material inflation 60% market demand 50% xiaomi 50%

Sentiment Analysis

Neutral

Score: -0.10

Source Transparency

Source

South China Morning Post

Political Lean

Center-Right (0.50)

Far LeftCenterFar Right

Classification Confidence

90%

Geographic Perspective

China

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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electric vehicles low-interest loans tesla ev sales car financing china price cuts raw-material inflation market demand xiaomi

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