Elon Musk-led Tesla Inc. (NASDAQ:TSLA) hiked lease prices for all its vehicles in the United States, its website showed on Wednesday, after the $7,500 federal tax credit that helped drive sales expired.
Tesla and its rivals were receiving the tax credit from the U.S. government, offering attractive lease prices for customers. The credit ended on Sept. 30, following the passage of Donald Trump’s ‘Big, Beautiful Bill,’ which eliminated the $7,500 credit for new EV leases and purchases, as well as a $4,000 credit for used EVs.
Best-Selling Model Y Lease Prices Up By Up To $70
Tesla’s best-selling Model Y monthly lease price increased to a range between $529 and $599, from a range of $479 to $529. Cheaper Model 3 lease prices touched $429 to $759 per month, from a range of $349 to $699.
Prices to buy vehicles remained unchanged.
See also: Used EV Sales Soar 59% As September $7,500 Federal Credit Deadline Sparks Rush
The loss of tax incentives is expected to hamper demand for electric vehicles in the U.S., as Tesla stock already grapples with tepid sales and growing competition from its Chinese rivals.
The company is due to report its third-quarter vehicle production and delivery numbers this week.
TSLA Price Action: Shares of the EV maker were down about 1% before the bell on Wednesday.
Benzinga’s Edge Rankings place Tesla in the 59th percentile for quality and the 4th percentile for value, reflecting mixed performance in both areas. Check the detailed report here.
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