Tesla has lowered the base leasing prices for its Model 3 and Y by $90 and $100 a month, following a price cut that made the Model 3 the most affordable Tesla to date.
But the company has now stated that it “expects” to lose access to half of the $7,500 federal tax credit that the Model 3 is eligible for at the end of the year, meaning that the credit will only be $3,750.
The Austin EV maker has been reducing its prices all year long. Just this past week, the Model 3 received a further $1,250–$2,250 price cut, and the Model Y LR and Performance trims saw a $2K price reduction.
Despite lease pricing not being reflected by the price cuts seen throughout the year, leasing has never really been Tesla’s specialty. Moreover, Tesla’s lease costs have always been slightly higher than on comparable EVs. For instance, Tesla’s leasing percentage of sales last quarter was just approximately 5%, significantly less than the industry average.
Last week, the EV maker provided a monthly payment price for each base model, including $419 for the Model 3 and $499 for the Model Y. However, as of today, the payments are $329 and $399 per month, with the same down payment of $4,500, term of 36 months, and mileage of 10,000 per year as the previously given costs.
However, given that Tesla now “expects” that half of the tax credit for the Model 3, it also appears that Tesla expects prices to increase by the end of the year. The Inflation Reduction Act tax credits are only available for vehicles with battery components and raw materials originating in the United States or a free trade partner. The restriction gets stricter each year, and it looks like Tesla thinks it won’t qualify for half of the credit with next year’s tightening of restrictions.
