Tesla Raises Prices Slightly—Offers Shoppers Its Own Lease Credit
Tesla has increased lease prices across its U.S. lineup now that the federal electric vehicle tax credit is gone.
Key Points
- Tesla raised U.S. lease prices across all models after the federal $7,500 EV tax credit expired on September 30.
- The Model Y lease now costs $529–$599/month (up from $479–$529), while the Model 3 jumped to $429–$759/month (from $349–$699).
- Tesla’s U.S. EV market share dropped to 38% in August, its lowest in nearly eight years, as competition intensifies and subsidies vanish.
The new prices just showed up on the company’s website, a day after Congress ended the $7,500 incentive for new EVs and leases, along with the $4,000 credit for used EVs.
A Tesla Model Y now leases for $529 to $599 per month, up from the $479 to $529 range it cost yesterday. The entry-level Model 3 also saw a hike, climbing to $429–$759 per month compared to $349–$699. Keep in mind, the sticker prices of Tesla’s vehicles remain the same—the automaker has only adjusted the lease rates to reflect the loss of federal subsidies.
Tesla and other automakers had been applying the federal credit to make leases more competitive, effectively lowering monthly payments for buyers. Ford and GM rolled out a program that uses their finance arms to “purchase” dealer EV inventory before the deadline, qualifying the vehicles for the tac credit before passing the benefit to customers via lease deals.
Looking at the fine print on Tesla's website, the automaker is applying its own $6,500 lease credit, which is subject to changing or ending at any time. However, it seems not all of Tesla's models are eligible for the lease credit—the Model S and Model X seem to have been left out, leaving the credit to Model 3, Model Y, and Cybertruck shoppers only.
Tesla’s U.S. market share slipped to 38% in August, its lowest level in nearly eight years, according to Cox Automotive. At one point, Tesla owned more than 80% of the U.S. EV market, although, to be fair, for most of the last decade, Tesla was really the only EV in town.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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