Tesla has made some significant changes to its lease options in the US, making their two most popular vehicles more affordable than ever. While reducing lease prices, the company is also warning that the full $7,500 tax credit for the Model 3 is expected to be reduced at the end of the year.
After reducing the base prices of the Model 3 and Model Y earlier this week to new lows, after which the Model 3 now starts at $40,380 and the Model Y at $45,380, Tesla has also revamped lease pricing to new lows.
The Model 3 Rear-Wheel Drive (RWD) is now available for just $329 a month over a 36-month lease with a $4,500 down payment. This covers 10,000 miles per year and results in a three-year lease cost of $18,154, not including additional fees. The same lease in Canada will cost you $772 per month, or $27,792 over the three-year period, according to Tesla’s online configurator.
The Model Y lease costs slightly more, at $399 per month with the same down payment and mileage limits, bringing the total cost to $19,954. In Canada the same lease will set you back $862 per month, or $31,032 over three years.
These changes should boost Tesla’s leasing program, which has historically lagged behind sales figures. With this lower price to entry, Tesla hopes to make EVs even more accessible and attractive to potential customers.
In the US, Model 3 lease now starts at $329/month & Model Y at $399/month
— Tesla (@Tesla) October 12, 2023
In addition to the lease adjustments, Tesla is also preparing for a significant change in federal tax credits. The online configurator now warns that the current $7,500 tax credit for the Model 3 is expected to be halved to $3,750 by the end of the year, pending federal guidance. This change is due to tightening restrictions on the Inflation Reduction Act tax credits, which require more domestic sourcing of components and materials.
Tesla says that to ensure receiving the full credit to take delivery before the end of the year.
Tesla’s pricing moves come after several price cuts throughout the year, which have significantly impacted the EV market. While lease pricing has historically been higher for Tesla vehicles, these changes may help shift the tide, making leasing a more attractive option for potential EV buyers.