Tesla Model Y Performance leasing launches at $799/month amid recent price adjustments

Following lease price hikes across key models in late 2025, Tesla has launched leasing for the Model Y Performance in the US, starting at $799 per month with $3,000 down over 36 months and 10,000 miles per year.

Tesla has made its Model Y Performance variant available for leasing in the United States, providing a new option for the high-performance electric SUV after recent price increases on other models effective December 26, 2025.

As reported by Tesla analyst Sawyer Merritt on X, the lease terms are $799 per month, including a $3,000 down payment, a 36-month duration, and 10,000 miles annually. This follows Tesla's strategy of adjusting lease pricing—previously hiking rates on Model 3, Model Y Premium variants, and Cybertruck to encourage Q4 2025 deliveries—which underscores efforts to manage demand and broaden EV accessibility amid growing adoption.

The Model Y Performance offers accelerated performance and advanced features, appealing to buyers seeking flexibility over outright purchase. Availability is primarily through Tesla's US website, with potential variations by location. No details on international rollout or further customizations were shared.

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Photorealistic rendering of Tesla's upcoming compact SUV on a Chinese factory line with Elon Musk approving the design.
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Tesla developing compact affordable SUV amid strategy shift and sales slump, Reuters reports

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Tesla is developing a new compact electric SUV priced below the $36,990 Model 3 and measuring 168 inches (4.3 meters) long—shorter than the Model 3 (185.8 inches) and Model Y (188.7 inches)—according to Reuters citing four anonymous supplier sources. The all-new design awaits CEO Elon Musk's production approval and may launch first in China before expanding to U.S. and German factories, signaling a pivot back to core vehicles after a focus on robotaxis and humanoid robots.

Tesla has launched a new financing option for the Model 3 in the United States, offering 0.99% APR on loans up to 72 months. This deal applies to all configurations of the vehicle and replaces a previous 2.99% rate. The initiative seeks to enhance affordability for buyers of Tesla's second-most popular model.

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Tesla held an unveiling event for its Model Y L in India on Monday. Orders for the vehicle are now open, with deliveries scheduled to begin this summer. The Model Y L Premium AWD starts at 61,99,000 Indian Rupees, approximately $66,600 USD.

Rivian has revealed details of its upcoming R2 mid-size electric SUV, positioning it as a more affordable alternative to its R1 models and a competitor to the Tesla Model Y. The vehicle will launch with higher trims this year, while the entry-level Standard model arrives in late 2027 starting at $45,000. Key features include varying power outputs and ranges up to 345 miles.

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