Tesla increases lease prices as US EV tax credit expires

The monthly lease of the firm’s best-selling Model Y increased to about $599 at the top range from $529. Prices of all vehicles, however, remain unchanged.

Tesla has raised lease prices for all its vehicles in the US after a $7,500 federal tax credit that helped boost electric vehicle sales expired, according to the company’s website on Wednesday.

The change follows the end of tax incentives under sweeping legislation passed by Congress, which eliminated the $7,500 credit for new EV leases and purchases, as well as a $4,000 credit for used EVs, effective September 30.

Tesla, along with its rivals, was receiving the tax credit from the US government and including them in offering attractive lease prices for customers.

The monthly lease of the firm’s best-selling Model Y increased to about $599 at the top range from $529. Prices of all vehicles, however, remain unchanged.

Demand for battery-powered models is already showing signs of a slowdown after rapid growth earlier in the decade. Sales could drop after the credits dry up, auto executives and analysts have warned.

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