Tesla has increased lease rates for its Model 3 and Model Y in the United States following the expiration of federal electric vehicle (EV) tax credits on September 30.
According to an overnight update to Tesla’s updated online configurator, lease prices for both the Model 3 and Model Y have climbed by up to 11%. The Model Y lease now starts between $529 and $599 per month, compared to its previous $479–$529 range.
Meanwhile, the Model 3 has jumped to $429–$759 per month, up from $349–$699.
The shift coincides with the loss of the federal $7,500 new EV lease and purchase credit and the $4,000 used EV credit, which expired at midnight last night. Automakers, including Tesla, had been passing these incentives directly to customers through reduced monthly lease payments.
Without the subsidies, Tesla has raised rates to reflect the true market cost but is offering a $6,500 lease credit to partially offset the change.
At the same time, the automaker has introduced new promotional financing rates to help soften the blow for buyers, offering 2.99% APR on the Model 3 and 3.99% APR on the Model Y for up to 60 months—though only for customers with excellent credit scores of 720 or higher.
