Tesla launches $6,500 lease discount after federal EV incentive expiration

EV buyers in the US are immediately feeling the effects of the end of the federal tax credit as Tesla increases leasing prices. The company, however, has launched a new lease discount to help cushion the effect.

The Model Y and Model 3 are now 11 percent more expensive to lease, post the federal EV incentive. The electric Model Y SUV, which was leased for between $479 and $529 per month, now costs up to $599. Similarly, the Model 3 now leases for between $429 and $759, up from between $349 and $699. All the prices are calculated with a $3,000 deposit and for a lease period of 36 months.

Tesla notes on its website that the monthly lease prices above are inclusive of the $6,500 Tesla lease credit. On paper, it means customers will have to pony up the $1,000 shortfall now that the $7,500 tax credit is no longer available.

Tesla also states that “order does not guarantee eligibility,” meaning not all lessees will get the bonus.

While Tesla hopes to maintain demand with the new discount, it is evident that its profit margin will be affected. However, it is not the only EV maker reacting to the expiration of the federal incentive. Ford and GM have devised a method to extend the $7,500 lease savings for at least a few months.