Tesla is kicking off the holiday season with a major push to keep the Model Y at the top of the EV sales charts. With the latest move, the automaker has removed the $3,000 cash down payment that previously accompanied its popular US$479 per month Model Y lease.
According to Tesla’s website, the updated lease terms apply to the Model Y Premium Rear-Wheel Drive, which now starts at US$479 per month for 36 months with $0 down and a 10,000-mile annual allowance. That price point previously required a US$3,000 upfront payment.
The Premium All-Wheel Drive version also gets the same zero-down structure, starting at US$529 per month, while maintaining the same lease duration and mileage limits.
Tesla is able to offer the lower barrier to entry thanks in part to an internal $6,500 lease credit introduced on October 1—one day after the federal tax credit expired. The credit is automatically integrated into Tesla’s advertised lease prices and comes with the caveat that it is “subject to change or end at any time.”
Free Upgrades Sweeten The Deal
Alongside the elimination fo the down payment, Tesla is including one free premium upgrade with every Model Y lease. Customers can pick from:
- Premium paint (Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver, or Ultra Red)
- 20-inch Helix 2.0 wheels
- White interior
- Tow hitch rated for 3,500 lbs
A Response To The New Post-Tax Credit Landscape
The U.S. federal government’s elimination of the $7,500 EV tax credit at the end of September has reshaped how automakers—especially Tesla—structure their deals. Lease prices initially climbed as high as $599 per month for the Model Y in early October, before Tesla countered with its $6,500 lease credit.
The new zero-down promo represents Tesla’s strongest effort yet to maintain demand as the industry adjusts to life without subsidies.
By stripping out upfront costs and adding free upgrades, Tesla is positioning the Model Y to remain one of the strongest value propositions in the EV segment—even in a rapidly shifting market.
NEWS: Tesla has just effectively lowered U.S. Model Y lease prices by $3,000 by eliminating the down payment. The starting monthly price stays the same at $479/mo, but now you can get that with $0 down (vs $3k before).
— Sawyer Merritt (@SawyerMerritt) November 15, 2025
Plus, every new lease includes one free upgrade — your… pic.twitter.com/roT6dAZwRf
