Tesla has increasedโ monthly lease prices for some of its vehicles โขby as much โas $200, following the expiration of a $7,500 U.S.federal tax credit for electric โvehicles at the start of 2024. The price hikes impact popularโ models like the Model 3 and Model Y, effectively passing the lost incentive onto consumers โฃwho prefer to lease rather than buy.
The end of the tax credit considerably alters the financial โequation for potential โฃTesla lessees.Previously, the credit lowered the effective cost of leasing, making Teslas more competitive with gasoline-powered vehicles.Now, with the credit gone, Tesla is adjusting lease rates to maintain profitability, impacting affordability for a segment of the market and potentially slowing EV adoption ratesโ consequently.
Accordingโค toโฃ a Reuters review of Tesla’s website, the monthly lease โpayment for a base Modelโ 3 Rear-Wheel Drive increased to $449 from $399 in December. The Model Y Long range now leases for $549 per month, up from $499. These changes were โขfirst noted by Tesla owners on โฃsocial media platforms likeโฃ X, formerly known as Twitter.
The $7,500 tax credit was available to consumers who purchased electric vehicles manufacturedโข in North America with battery components sourced from the United States or countries with which the U.S. has free trade agreements. Tesla and โฃother automakers had beenโค urging Congress โขto reinstate or extend theโ credit, but it expired on January 1st without renewal.
Tesla did not promptly respond to a request for comment. Theโค company offers financing options, andโค buyers can still claim the $7,500 credit at the point of sale if they meet the eligibility requirements. However, leasing customers are not currently eligible for the direct credit, making โthe lease price adjustmentsโฃ necessary for Tesla to remain competitive.