Tesla has introduced a series of incentives to boost sales in the final weeks of 2025, including free upgrades on inventory vehicles, 0% APR financing, and $0 down leases. These measures come after the end of the federal EV tax credit pulled demand forward into the third quarter. The offers aim to clear inventory and maximize deliveries by December 31.
As 2025 draws to a close, Tesla is ramping up efforts to move inventory vehicles amid a challenging fourth quarter. The automaker, facing reduced demand following the expiration of the $7,500 federal EV tax credit at the end of Q3, has launched what it describes as limited-time offers available on select inventory while supplies last.
Key incentives include one free upgrade on eligible Model 3 and Model Y inventory vehicles. This waives the cost of options such as premium paint colors like Ultra Red or Quicksilver, 20-inch Induction wheels, or white interiors, providing a value of $1,000 to $2,500. Tesla's website notes that buyers must take delivery by December 31, 2025, to qualify.
Financing options have also been enhanced. The company is offering 0% APR for up to 72 months on purchases of Model 3 and Model Y, particularly the Standard Range Model Y. For premium trims of Model Y and Model 3, rates are set at 2.99% APR, a reduction from the standard 6.31%. These deals can save buyers thousands over the loan term; for instance, a $44,490 Model Y Premium RWD could see savings of $7,000 to $9,400 compared to average market rates of 4.9% to 6.5%.
Leasing customers benefit from $0 down payments across the lineup, eliminating the previous $3,000 minimum for Model Y. Monthly rates include $449 for Model Y, $342 for Model 3, $1,771 for Model S, and $1,928 for Model X. These incentives can be stacked with programs like referrals and Full Self-Driving offers.
The push follows a year where demand was front-loaded due to the tax credit's end, making Q4 sales more difficult. Tesla delivered 495,570 vehicles in Q4 2024, ending the year with 1,789,226 global deliveries. Analysts note these are among the strongest end-of-quarter offers seen recently, though some question if they match past aggressiveness like free supercharging or larger discounts.
