Tesla Expands Q4 2025 Incentives with Free FSD, $299 Leases

Building on initial December promotions amid global sales challenges, Tesla details U.S.-focused incentives like zero-percent financing, $299 monthly leases, and three months of free Full Self-Driving to clear inventory and offset lost federal tax credits after November's sub-40,000 unit sales.

Tesla's late 2025 promotions, as previously reported, now highlight specific U.S. offers to meet Q4 delivery targets exceeding 500,000 units globally. Free premium upgrades (e.g., wheels, interiors, towing) apply to inventory models while supplies last. Model Y Standard Range qualifies for 0% APR over 72 months, saving over $5,000 in interest, alongside zero-down leases from $299/month for Model 3 and Y.

Buyers also get three months free Full Self-Driving and Supercharging, stackable with state incentives in California and New York for up to $10,000+ savings. These expire December 31 and address softening demand from high rates, infrastructure worries, and rivals like Ford and GM, with Tesla holding 50% U.S. EV share.

The moves support quarterly goals amid competition, prioritizing immediate value through software updates and direct sales.

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Tesla showroom showing Model S and X phased out from referral program with production end signs, Cybertruck promoted with Full Self-Driving trial incentive.
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Tesla excludes Model S and X from referral program amid production wind-down

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Following its January announcement to end Model S and Model X production in Q2 2026, Tesla has removed these models from its U.S. referral program and adjusted Cybertruck incentives, shifting from cash discounts to Full Self-Driving trials to prioritize software adoption.

Tesla reported a net income of $477 million for the first quarter of 2026, marking improved profitability over the prior year. Revenue rose 16 percent to $22.4 billion, driven by higher automotive sales and services. The company highlighted growth in full self-driving subscriptions amid ongoing investments in AI and robotics.

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Following earlier policy shifts, Tesla has solidified its Full Self-Driving (FSD) transfer requirement to new vehicle deliveries by March 31, 2026, as detailed in a March 5, 2026 update. This particularly challenges entry-level Cybertruck Dual-Motor AWD buyers, who face summer 2026 deliveries and a price increase from $59,990, with no inventory for quicker options.

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