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.
On October 17, 2025, Tesla announced lower interest rates for financing the 2026 Model S and Model X, dropping to 3.99% APR for 72 months on all configurations. This marks the most significant update since federal tax credits ended on September 30, 2025. Previously, the rate stood at 5.14% APR.
The 3.99% rate applies only with a 3% down payment of the purchase price—for a $100,000 vehicle, that equates to $3,000. Without a down payment, the rate rises to 4.99% APR. According to analysis, this adjustment could save buyers roughly $3,700 on a $100,000 vehicle with the minimum down payment, effectively acting as a nearly $4,000 price reduction.
Tesla has offered more aggressive incentives in the past, such as 0% financing, free Full Self-Driving software, and complimentary Supercharging. The current deal aligns the Model S and X rates with those of the 2026 Model Y. Lease options remain unchanged, with the cheapest Model S at just over $2,000 per month and the Model X exceeding $2,300 per month.
These vehicles did not qualify for the $7,500 federal purchase tax credit, but leases benefited from a Commercial Clean Vehicle Credit until its elimination on October 1, 2025, causing lease prices to increase by up to $242 per month. Earlier, in August 2025, Tesla raised manufacturer suggested retail prices (MSRPs) for both models by about $10,000, incorporating a standard Luxe Package that includes Full Self-Driving and Supercharging features. This led to a roughly 20% rise in lease prices at the time.