Tesla changes insurance incentive scheme to boost sales in China

Tesla Inc has decided to change insurance incentives in order to stimulate sales in China. Tesla Inc said that insurance incentives for car orders in China placed before November 30 have been raised. However, the incentives will be reduced in December to encourage consumers to place orders as early as possible.

Previously Tesla offered an insurance incentive of 7,000 yuan ($970) to customers for orders made between October 1 and December 30, Reuters reported. In spite of that, on Tuesday the automaker said that the incentive had been raised to 8,000 yuan for orders placed in November and lowered to 4,000 yuan for December orders.

Tesla announced the change in insurance incentives and encouraged its customers to purchase the company's products. An insurance incentive is a cash discount offered to consumers to get insurance from Tesla partner insurers.

According to the China Passenger Car Association, Tesla shipped 71,704 electric vehicles made in China in October, down 14% from a record high in September.

Tesla also cut starting prices for Model 3 and Model Y vehicles in China and closed its flagship showroom in China.