Some Tesla Lease Prices Climb As Tax Credits Expire

by Chris Teague

Published: October 1st, 2025

some tesla lease prices climb as tax credits expire

Federal EV tax credits expired yesterday, eliminating an up to $7,500 incentive for buyers. Tesla said it would see fewer negative impacts from the changes than other automakers, but it recently hiked lease prices as the credits came to a close.

Tesla Model 3

Tesla bumped lease prices for some vehicles, pushing the Model Y to up to $599 per month for some configurations, a $70 increase. The Model 3 increased by up to $90 for some leases. These changes are likely due to a range of challenges Tesla faces, including a drop in demand, even before the credits stopped.

Tesla’s market share dropped to its lowest point in eight years last month. Data from Cox Automotive showed that the company’s share dropped to 38 percent in the U.S. as buyers shopped electric options from other brands, the number of which have grown rapidly over the last few years.

Tesla Model Y

The tax credits just ended, so there’s no way to know the impact of the change just yet. Some automakers have begun offering in-house incentives and discounts to compensate for the loss of tax incentives, but that effort can’t continue forever. Tesla’s precarious position means it likely can’t manage significant discounts, which may further decrease its standing with buyers.

[Images: Tesla]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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3 of 15 comments

EBFlexing on ur mom on Oct 01, 2025

Good. This is what needs to happen

1 Reply
Aja8888 on Oct 02, 2025

So now that it is fact that EV's last forever with NO MAINTENANCE (/s well, periodic new tires anyway), it could be time for the 10 year car note to GET THAT PAYMENT DOWN TO AN ACCEPTABLE LEVEL!🤣

Like Reply
- Lloyd Bonified on Oct 02, 2025
  
  I WOULD GO WITH A 15 YEAR MORTGAGE!!!
  
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