Tesla has rolled out new financing and lease incentives for the Model Y and Model 3, including reduced interest rates and free upgrade options, as part of efforts to stimulate sales in an increasingly competitive electric vehicle market.
The company said the annual percentage rate (APR) for financing has been cut by more than half to 1.99% for a 72-month term, with Model Y monthly payments starting at $638. Lease pricing has also dropped, with the Model Y Premium RWD now available from $479 per month on a three-year lease with a $3,000 down payment.
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To further attract buyers, Tesla is offering free upgrades on new Model Y and Model 3 leases. Customers can choose one complimentary option, including premium paint colors such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver, or Ultra Red. Other options include 20-inch Helix 2.0 all-season wheels, a white vegan leather interior, or a Class II steel tow hitch rated for 3,500 lbs.
For the Model 3, Tesla has applied even steeper incentives, reducing the starting lease price by 23%. The sedan is now available from $329 per month, with the same 1.99% financing rate and free upgrade offer applied.
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The move follows Tesla’s earlier introduction of the more affordable Model Y Standard and the Performance variant, as the company seeks to offset the end of U.S. federal tax credits for some configurations and sustain momentum amid slower EV demand growth.
Tesla did not specify how long the promotional offers would last, but similar incentives in the past have typically run until the end of the quarter.