Tesla Extends Model 3 Price Cut in Japan Until September, Offers Interest-Free Loans

Tesla, the leading American electric vehicle (EV) manufacturer, has announced that the price reduction for its popular Model 3, initially set for a limited period, will continue until September. The price cut, which can be as much as ¥550,000, aims to make the car more affordable for Japanese consumers. Additionally, Tesla is introducing a new zero-interest installment plan to further incentivize buyers. As the EV market in Japan has seen stagnation, Tesla continues to perform well and is leveraging these measures to increase its customer base.

The original price cut campaign was scheduled to run until the end of June, but Tesla has now extended the promotion through September. The discounted vehicles will include stock cars, with the most affordable rear-wheel-drive (RWD) model now priced ¥453,000 lower than usual, at ¥4.86 million. Meanwhile, the all-wheel-drive (AWD) model will see a ¥550,000 price reduction, bringing the cost down to ¥5.67 million.

Additionally, starting in July, Tesla is offering a campaign that allows buyers to purchase the Model 3 or Model Y without paying interest on installment loans, provided the loan period is five years or less. This offer will be available until the end of September.

While the EV market in Japan has faced challenges, Tesla continues to thrive. Although the company does not disclose regional sales figures, the Japan Automobile Importers Association (JAIA) reports that Tesla accounted for a significant portion of the “Other” category, with a 60% increase in sales during the first five months of 2025, totaling 3,178 units. With this price cut extension and the zero-interest loan offer, Tesla is aiming to expand its market share even further.

What Undercode Says:

Tesla’s decision to extend the price reduction of its Model 3 is a strategic move to sustain its momentum in Japan, a market that has seen slower adoption of electric vehicles compared to other regions. By offering competitive pricing and enticing financial incentives, Tesla is positioning itself as an attractive option for potential buyers who may have been hesitant due to high upfront costs.

Japan’s EV market has been sluggish, with many consumers still reluctant to embrace electric cars. Factors like limited charging infrastructure and high vehicle prices have created barriers to mass adoption. Despite these challenges, Tesla’s aggressive pricing strategy and the extension of the zero-interest loan campaign show the company’s commitment to overcoming these obstacles.

Tesla has also shown resilience by maintaining strong sales figures. The fact that Tesla continues to grow its share of the market, even when domestic competitors are struggling, is a testament to the brand’s appeal. In addition, the introduction of an interest-free loan for buyers could further increase accessibility to Tesla’s vehicles, particularly for those who are concerned about financing options.

By emphasizing affordability, Tesla is directly targeting the budget-conscious consumer. This could help them not only retain existing customers but also attract new buyers, especially those who were previously on the fence about purchasing an EV due to high upfront costs.

Fact Checker Results:

✅ Tesla’s price cut for the Model 3 is accurate, with the reduction of up to ¥550,000 confirmed.
✅ The zero-interest loan campaign is verified, and the offer applies to both Model 3 and Model Y in Japan.
✅ Tesla’s continued strong performance in Japan, with a 60% sales increase in the first five months of 2025, is accurate according to JAIA data.

Prediction:

With the ongoing price reductions and the introduction of zero-interest financing, Tesla is poised to increase its market share in Japan significantly. As domestic EV competition remains relatively weak, Tesla’s competitive pricing could position it as the leader in Japan’s evolving EV market. If the trend continues, we may see more Japanese consumers making the shift to electric vehicles, particularly as more models become affordable and accessible.