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.
On October 21, 2025, Tesla updated its online configurator overnight, slashing lease prices across its US electric vehicle lineup to counter expected demand slowdowns in the fourth quarter. This follows a record third-quarter delivery of 497,099 vehicles, driven by buyers rushing to claim the $7,500 federal tax credit before it expired at the end of September. Without the credit, Tesla's vehicles effectively cost $7,500 more, prompting the company to adjust leasing terms as an initial response.
The new lease deals apply to 36-month terms with 10,000 miles per year allowed. For the Model 3 Premium (rear-wheel drive), payments dropped from $429 to $329 per month with $3,000 down, a 23 percent reduction. The Model Y Premium (long range) fell from $529 to $449 per month, a 15 percent cut. The Cybertruck All-Wheel Drive saw a smaller 7 percent decrease, from $749 to $699 per month. Total due at signing, including fees, reaches about $4,025 for the Model 3 and $4,144 for the Model Y. Zero-down options are available but higher: $419 for Model 3, $543 for Model Y, and $851 for Cybertruck, with upfront fees still applying, such as $1,114 for Model 3.
These offers exclude the new entry-level Model 3 Standard and Model Y Standard trims, limiting leases to premium and performance variants. Tesla's website explicitly notes that lease prices will increase on November 1, positioning the deals as a short-term incentive lasting about 10 days. Analysts view this as a test of post-tax-credit demand, with effective monthly costs now at $441 for Model 3 (down 19 percent from yesterday) and $564 for Model Y (13 percent lower, and 5.2 percent below pre-credit levels). Model S and Model X leases remain unchanged, though financing rates were cut to 3.99 percent APR last week. The move highlights Tesla's strategy to maintain momentum in its primary US market amid broader EV industry challenges.