On the Dash:
- Tesla raised U.S. lease prices after the federal $7,500 EV tax credit and $4,000 used EV credit expired on Sept. 30.
- Model Y leases now cost $529–$599/month (up from $479–$529) and Model 3 leases $429–$759/month (up from $349–$699).
- Tesla’s U.S. EV market share fell to 38% in August, down from over 80% earlier in the decade.
Tesla has increased lease prices for all of its vehicles in the United States after the $7,500 federal EV tax credit expired, according to updates on the company’s website Wednesday.
The move follows the September 30 end of federal tax incentives passed under legislation that eliminated the $7,500 credit for new EV leases and purchases, along with a $4,000 credit for used EVs. Automakers, including Tesla, had been passing along these savings to customers through discounted lease offers.
As a result, Tesla’s best-selling Model Y saw its monthly lease climb to between $529 and $599, up from $479 to $529. Lease prices for the Model 3 now range from $429 to $759 per month, compared with a previous range of $349 to $699. While lease prices are higher, the company has left vehicle purchase prices unchanged.
The change comes as demand for EVs shows early signs of slowing after years of rapid growth. Industry executives and analysts have warned that sales may drop now that federal credits have expired, removing a key affordability lever for consumers.
Tesla, once the dominant force in the U.S. EV market, has also faced mounting competitive pressure. The automaker’s share of the domestic EV market dropped to 38% in August, according to early data from Cox Automotive, marking its lowest level in nearly eight years. That is a sharp decline from the more than 80% share Tesla once commanded earlier in the decade.
The expiration of incentives and Tesla’s price adjustments highlight growing uncertainty in the U.S. EV market. As more automakers launch battery-powered models, competition continues to intensify, putting additional pressure on Tesla’s margins and market share.
