Tesla said it will raise lease payments for its Model 3 and Model Y vehicles in the United States later this month, giving customers a limited period to lock in current terms before higher costs take effect.
Starting Sept. 21, lease prices will increase by $50 per month for the Model 3 and $80 per month for the Model Y, the company said. Current offers include $299 per month for the Model 3 Long Range Rear-Wheel Drive and $399 per month for the Model Y Long Range Rear-Wheel Drive.
The change comes just days before the expiration of the $7,500 federal electric vehicle tax credit on Sept. 30, which Tesla has tied to delivery deadlines. “Customers must order and apply for leasing before the deadline to secure the lower payments,” the automaker said, adding that vehicles must be delivered before the end of the month to remain eligible for the subsidy.
The incentive was originally introduced under President Joe Biden’s administration and intended to run through 2032 but is being phased out under President Donald Trump’s “One Big Beautiful Bill Act.” Leasing has been a popular route for U.S. buyers, as the tax credit is applied at the point of sale to reduce monthly costs.
Tesla has rolled out additional promotions ahead of the cutoff, including $1,000 discounts for military members, first responders, teachers and students, along with a one-month trial of its Full Self-Driving (Supervised) software and the option to transfer the system from an existing vehicle.
Other automakers are also adjusting to the changing incentive landscape. Lucid, for example, has said it will offer a $7,500 lease credit on its upcoming Gravity SUV, reflecting a broader industry trend toward lease-based subsidies.