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 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.

Following November's US sales plunge, Tesla launched aggressive December incentives including 0% financing and free Supercharging to hit record Q4 deliveries amid declines in the US and Europe, offset by China growth.

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Tesla has reduced monthly lease payments for its Model 3, Model Y, and Cybertruck in the United States by up to 23 percent, effective immediately. The discounts aim to boost demand following the end of the federal EV tax credit. Prices will rise again on November 1.

Tesla announced on January 23, 2026, that new Model 3, Model Y, and base Cybertruck vehicles in the US and Canada will no longer include standard Autopilot features like lane-centering Autosteer, limiting free access to Traffic-Aware Cruise Control only. Advanced capabilities now require a $99 monthly Full Self-Driving (FSD) Supervised subscription, following the January 18 decision to end $8,000 one-time FSD purchases after February 14. The shift, offering new buyers a 30-day FSD trial, faces regulatory scrutiny over misleading terms and safety concerns, alongside mixed customer reactions.

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Tesla is notifying customers in the US and Canada via SMS and email that its free Full Self-Driving (FSD) transfer program—allowing owners to move FSD from old to new vehicles—will end after orders placed by March 31, 2026, the first firm date after multiple extensions. This coincides with the phase-out of one-time FSD purchases after February 14, 2026, leaving subscriptions as the only option.

Tesla CEO Elon Musk announced that the company's supervised Full Self-Driving software will shift to a subscription-only model at $99 per month starting after February 14, ending outright purchases. Owners expressed mixed reactions, from frustration over recurring costs and safety worries to enthusiasm for the technology's convenience. An analyst views the change as a sign of Tesla's growing confidence in its self-driving capabilities.

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Tesla is providing discounts of up to $2,200 on its Model Y electric SUVs in India to address excess inventory. The move aims to sell off roughly a third of the remaining unsold vehicles in the country. The company recently shipped around 300 of these electric vehicles.

 

 

 

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