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Tesla launches aggressive end-of-year incentives in the US
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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.
The napkin curve, formally known as the Laffer Curve, offers a simple illustration that lower taxes can boost government revenue through growth. In reality, it serves more as a political tool than a precise policy guide. Empirical evidence shows that in most advanced economies, tax cuts rarely fully offset lost revenue.
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The Ministry of Industry has announced a new package of grace periods and incentives to support distressed industrial projects that have exceeded their approved implementation timelines, aiming to accelerate production, protect manufacturers, and maximize the use of industrial land. These measures, to be implemented by the Industrial Development Authority, will remain in effect until April 30, 2026.
Several automakers are offering cash bonuses up to $2,000 to entice current Tesla drivers to switch brands in October 2025. These conquest incentives target Tesla owners without requiring lease endings or trade-ins in many cases. The deals, valid through late October or early November, aim to boost sales of competing electric and luxury vehicles.
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Tesla has reduced financing rates for its 2026 Model S and Model X electric vehicles to as low as 3.99% APR, effective today. This change follows the end of federal tax credits and aims to make purchases more affordable for some buyers. However, the best rate requires a minimum down payment.