Tesla has launched new finance offers in France in response to declining demand for battery electric vehicles (BEVs) and the brand’s slipping market position. Despite a 12% year-to-date growth in overall BEV retail sales, the market expansion has been slower than anticipated. Tesla, which saw a 40% drop in year-to-date sales compared to the same period in 2023, was overtaken by local competitors Peugeot and Renault.
In an effort to reverse this trend, Tesla introduced special finance offers in September 2024, which included competitive easy lease options and a rare 0% APR classic credit (personal loan) offer, targeted at boosting Model Y sales. The offers included a Tesla bonus of €4,000, combined with a government ecological bonus of €4,000, making the monthly payments more attractive. For the Model Y BEV RWD version, this translated to a reduction in monthly installments from €585 in August to €425 in September for a 48-month lease term.
The initiative appears to have paid off. According to preliminary data from the CCFA (Comité des Constructeurs Français d’Automobiles), Tesla recorded 4,592 new registrations of the Model Y in September—its highest monthly total of 2024, accounting for 24% of the model’s year-to-date sales. This surge in sales helped Tesla close out the third quarter on a stronger note and reduce its inventory of current Model Y versions ahead of the expected 2025 launch of a facelifted model.
The French market’s shift toward other BEV options and increased competition from brands like BMW and Stellantis, which have also introduced competitive finance offers, has been a significant challenge for Tesla. The entry of new models with attractive pricing and leasing terms has given customers more options, impacting the once-dominant Model Y.
Finalized data on Tesla’s sales performance, expected later this month, will provide more insight into the impact of these offers. It will reveal the breakdown between retail and business sales and determine whether the sales surge was primarily driven by the easy lease option or the interest-free classic credit product.
With the BEV market facing both increased competition and evolving customer preferences, Tesla’s strategic finance offers represent a critical move to maintain its foothold in the French market while setting the stage for a fresh start with the upcoming Model Y updates.
