Tesla Inc TSLA has launched a trade-in campaign in China to encourage more traditional, gas-powered engine car owners to switch over to its electric cars amid growing demand and competition, CnEVpost reported on Monday, citing Shanghai Securities Journal.
What Happened: Tesla’s trade-in benefits are valid for customers who place orders between July 1 and Dec. 31 and complete a vehicle trade-in agreement before delivery.
The key benefit includes a free 90-day trial of Enhanced Autopilot functionality, which the Elon Musk-led company introduced in China in February last year at $4,943, half the price of its Full Self-driving (FSD) option.
Tesla’s FSD feature is more advanced, while the EAP only adds a few functions including an auto park, smart summon, and auto lane change.
It is also offering a two-week commute guarantee after the trade-in and a price protection validity. Customers will get a free in-home evaluation of their old car.
Why It Matters: Beijing, China’s capital city, on Sunday began offering subsidies to lift the adoption of NEVs, a measure introduced in Shanghai earlier this month.
The program includes a subsidy of up to $1,500 from June 1 to Dec. 31 and is available to individual car owners who scrap or transfer the passenger cars they have held for more than one year and buy NEVs instead.
Tesla trails China’s BYD Co BYDDY in new energy vehicle sales. China contributed over half of the Elon Musk-led company’s global sales last year.
Price Action: Tesla closed 4.5% higher at $737.1 on Friday, according to data from Benzinga Pro.
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