Tesla has reversed its long-standing policy of prohibiting lease buyouts in the United States, a move seen as a shift in the company’s approach to its robotaxi ambitions. Effective November 27, Tesla now allows U.S. customers to purchase their vehicles at the end of their lease, except in Iowa and Louisiana, where local regulations still prevent such transactions.
The updated policy includes an option for customers to sell leased vehicles to third-party providers, with an additional fee of up to $350 for the buyout. Tesla announced the change through its website over the Thanksgiving weekend, signaling a significant departure from its previous leasing strategy.
Tesla first eliminated lease buyouts with the launch of the Model 3 in 2019, citing plans to repurpose leased vehicles for its future robotaxi network. “Customers who choose leasing over owning will not have the option to purchase their car at the end of the lease, because with full autonomy coming in the future via an over-the-air software update, we plan to use those vehicles in the Tesla ride-hailing network,” Tesla stated at the time.
Industry observers, such as the U.S. portal Electrek, view the policy shift as a potential scaling back of Tesla’s autonomous vehicle plans. “It’s hard to think of this news as anything but a pullback in Tesla’s self-driving plans,” Electrek reported, noting that Tesla’s continued promotion of robotaxi capabilities, including the recently unveiled Cybercab, contrasts with the new lease buyout option.
Another factor could be Tesla’s push to secure more leasing deals in the fourth quarter, leveraging the buyout option to attract more customers. The ability to purchase leased vehicles could appeal to customers who use leasing as a way to test electric vehicles without taking on residual value risks.
While Tesla CEO Elon Musk reiterated at the October ‘We, Robot’ event that autonomous driving for all Tesla models could be achievable within two years, critics question whether the lease buyout option aligns with that timeline. “If Tesla is confident in its self-driving technology, enabling lease buyouts for cars leased today would seem counterintuitive,” Electrek wrote.
The policy change underscores Tesla’s evolving strategy, balancing its long-term vision for autonomy with short-term market demands.