Tesla Slashes Lease Price On Model 3 And Cybertruck

Tesla cut U.S. lease prices on the Model 3 and Cybertruck on Friday, a tactic it has increasingly resorted to move vehicles as more customers opt for leases.

Here’s what Tesla did on Friday (hat tip to Sawyer Merritt):

• Model 3 Long Range RWD: $249/month from $299/month
• Model 3 Long Range AWD: $349/month from $399/month
• Model 3 Performance: $599/month (no change)
• AWD Cybertruck: $749/month from $899/month

All the Model 3 leases are $2,999 down, 36 months, 10,000 miles. The Cybertruck is $7,500 down, 36 months, 10,000 miles. Downpayment, term, and miles are all the same as before the cut.

All the leases above are eligible for the $7,500 federal EV credit. Leases don’t have the same stringent requirements for the credit that purchases do, according to Stephanie Brinley, an analyst at S&P Global Mobility. The $7,500 is applied over the term of the lease to reduce monthly payments.

“The purchase credit requires North American assembly, increasing levels of regionally or locally-sourced components and raw materials, and has vehicle pricing and buyer income limits,” she said. “The leasing tax credit has none of those limits; the credit goes to the lending agency, which has so far passed the effect on to the consumer, though the regulation does not specifically say that they must,” Brinley said.

EV leasing explodes

The leasing credit has become increasingly important to consumers as EV leasing explodes. Nearly half (46%) of new EVs are leased, according to Experian. “That makes leasing the most popular option for EV drivers,” Experian said in November.