On February 1, 2025, Tesla took a significant step by reducing the lease prices for its popular Model 3 and Cybertruck in the United States. This move comes as more consumers are leaning towards leasing options, which have proven to be an effective strategy for the automaker in increasing vehicle sales.
Details of the Price Cuts
The updated lease prices for the Tesla models are as follows:
- Model 3 Long Range RWD: Now $249/month, down from $299/month
- Model 3 Long Range AWD: Now $349/month, down from $399/month
- Model 3 Performance: Remains unchanged at $599/month
- AWD Cybertruck: Now $749/month, down from $899/month
All leases require a down payment of $2,999 for the Model 3 and $7,500 for the Cybertruck. Each lease spans 36 months and allows for 10,000 miles of usage per year, consistent with the previous terms.
Federal EV Credit Benefits
These leases qualify for the $7,500 federal electric vehicle (EV) credit, which is particularly beneficial for consumers. Unlike the purchasing credit that has various restrictions, the leasing tax credit does not impose stringent requirements. This flexibility makes leasing an attractive option for many buyers, as the credit can lower monthly payments significantly.
According to Stephanie Brinley, an analyst at S&P Global Mobility, “The purchase credit requires North American assembly, increasing levels of regionally or locally sourced components, and has vehicle pricing and buyer income limits. In contrast, the leasing tax credit has none of those limits.” This means that leasing companies can pass on the benefits of the tax credit to consumers without the same qualifications that apply to purchases.
Growing Popularity of EV Leasing
The trend toward leasing electric vehicles is gaining momentum. Recent data from Experian indicates that nearly half of all new EVs are leased, highlighting leasing as the preferred choice among EV drivers. With this in mind, Tesla’s strategic price reductions may further encourage this shift in consumer behavior.
As Tesla continues to adapt to the changing market dynamics, these lease adjustments reflect its commitment to making electric vehicles more accessible and appealing to a broader audience.
