Tesla Raises Lease Prices On Most Popular Models After The Death Of The $7,500 EV Tax Credit
When the clock struck midnight on September 30 and the $7,500 federal EV tax credit expired (shoutout Donald Trump and his merry band of Republicans), we knew the automotive world would look much different today than it did before. Prices are now changing across the industry, and now Tesla — a bellwether for the whole EV market — is raising its lease prices.
Before, Tesla's best-selling Model Y crossover leased between $479 and $529 per month, depending on the trim level. Now, those same cars will cost you between $529 and $599 per month, according to Reuters. Oddly, the out-the-door vehicle prices remain the same. Similarly, Model 3 lease prices are up from $349-$699 to a much less palatable $429-$759. Ouch.
Tesla is in a tough spot right now. Sure, it's still the overall leader — in a big way — when it comes to EV sales, but its market share is dwindling. In August, the Austin, Texas-based company's share of the EV market dropped to a near eight-year low, Reuters reports. At one point, Tesla accounted for over 80% of EV sales in the U.S., but in August, that number was just 38%.
I very much doubt Tesla will ever see those sorts of numbers again
Good news in Europe
While all of this turmoil is happening in the U.S., Tesla is having a come-up in Europe. The automaker's sales rose in several European markets in September — including France (up 2.74%) and Denmark (up 20.5%), according to a separate Reuters report. Sales have been primarily driven by the refreshed Model Y, but some analysts say the company risks losing more ground as competition intensifies and its aging lineup remains mostly unchanged.
Along with France and Denmark, Tesla saw growth in Norway (up 14.7%) and Spain (up 3.4%), but its new car registrations fell in Sweden and the Netherlands for the ninth consecutive month. That's gotta hurt.
From January to August, Tesla's sales were down 42.9% year-over-year in the EU and down 32.6% in Europe as a whole, according to Reuters. During that same time period, EV sales as a whole were up 24.8%.
It'll be interesting to see if this sales boost is a blip on the radar or if Europe has forgiven Tesla CEO Elon Musk's many transgressions.