In a significant move impacting electric vehicle buyers, Tesla has raised lease prices across its U.S. lineup following the expiration of the $7,500 federal EV tax credit. The incentive, which ended on September 30, 2025, had allowed customers to enjoy lower monthly payments, making electric vehicles more affordable.
Tesla’s updated lease rates now reflect the end of this federal benefit. For instance, the Model Y lease has increased to a range of $529 to $599 per month, up from $479 to $529. Similarly, the Model 3 lease now ranges from $429 to $759 monthly, compared to the previous $349 to $699. These figures are based on a standard 36-month lease with 10,000 miles per year and a $3,000 down payment.
The expiration of the tax credit has prompted Tesla to adjust its pricing strategy, though the company is also offering a $6,500 lease credit to help offset some of the cost for new customers. This move aims to maintain demand despite the removal of the federal incentive.
Analysts suggest that the loss of the EV tax credit could affect the overall electric vehicle market, with potential slowing of sales and leasing activity in the coming quarter. Tesla, however, remains resilient, with its stock showing strong intraday movement. As of October 2, 2025, Tesla’s stock closed at $442.13 per share, with an intraday high of $477.64 and trading volume surpassing 114 million shares.
Industry observers note that other automakers, including Ford and General Motors, have introduced dealer programs to extend the benefits of the expired tax credit for remaining inventory. Still, Tesla’s proactive lease adjustments and new $6,500 lease incentive are designed to keep buyers engaged in the current market.
In summary, while monthly lease payments for Tesla vehicles have risen following the federal tax credit’s expiration, the company is providing partial compensation through its lease credit program. Customers looking to lease a Tesla are advised to review the updated pricing and incentives to make informed decisions.
This is a developing story, and we will continue to follow any further changes in electric vehicle pricing and industry responses.
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