That dream of leasing a new Tesla might be fading for some Americans.
In a move that directly impacts the wallets of potential electric vehicle drivers, the company has significantly raised its monthly lease prices, making the switch to cleaner cars a tougher choice for many.
What’s happening?
According to Business Insider, the change happened right after the federal EV tax credit expired on September 30. That incentive was worth up to $7,500, and its disappearance was felt almost overnight.
For a popular car like the Model Y, the 36-month lease price increased from $399 to $449 and even reached as high as $599 a month. The Model 3 saw a similar hike, with its upper-end lease price also climbing.
Why are expensive Tesla leases concerning?
For a lot of families, finding an extra couple of hundred dollars a month for a car payment just isn’t possible. This price jump is a huge barrier for people who were on the fence about going electric, as they hoped to save money on gas while helping the environment. It also feeds into bigger worries about the EV market.
One auto industry analyst, Karl Brauer, even warned of a potential “carmageddon,” telling Yahoo Finance that he could see the EV market share in the U.S. dropping well below 4% without the government incentive.
What is Tesla doing about it?
The end of the tax credit did cause a massive rush of sales right before the deadline. At the end of September, NPR cited Matt Jones, senior director of industry relations at the auto marketplace TrueCar, who said that EV sales “just exploded.”
Now that the dust has settled, carmakers are looking for new ways to keep the momentum going. Tesla, for instance, is getting creative with its referral program, now offering a hefty $1,000 discount on certain models for both the referrer and the new buyer.
While market analysts are divided on what to expect next, the competition in the EV space remains fierce. Thankfully, that means there are plenty of EVs to suit different budgets and lifestyles.
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