Tesla Offers Used Car Leases with $0 Down to Boost Sales Amid Federal Tax Credit Expiration

Tesla is now offering leases on certified pre-owned vehicles with $0 down to boost sales before the federal tax credit for electric vehicles expires at the end of the quarter. The leases are available in California and Texas for Model 3 and Model Y vehicles, with prices starting at $215 per month for a 24-month lease. This move aims to increase Tesla's sales and address a slowdown in the US EV market expected in the next 12-18 months.

Tesla has announced a new initiative to offer certified pre-owned vehicle leases with zero down payment, targeting Model 3 and Model Y vehicles in California and Texas. This move comes as the federal tax credit for electric vehicles (EVs) is set to expire at the end of the quarter, aiming to boost sales and address the expected slowdown in the US EV market over the next 12-18 months.

The leases, which are available in 12-month and 24-month terms, start at $192 per month for the Model 3 and $225 per month for the Model Y. The annual mileage options range from 10,000 to 15,000 miles per year. Tesla has stated that this initiative is a response to increased demand for its vehicles and the need to clear inventory of pre-owned vehicles.

This strategy is particularly timely, given the recent price cuts announced by Tesla to lead the US EV market [1]. The company has been facing challenges, including legal issues surrounding its self-driving technology and a decline in vehicle sales, which have led to a 12% drop in shares since January and a 16% decrease in automotive revenues in the second quarter [2].

While the introduction of certified pre-owned leases with zero down payment is a strategic move to stimulate sales, it remains to be seen how successful this initiative will be in the face of ongoing legal challenges and market competition. The company's ability to navigate these challenges will be crucial in determining its future success in the EV market.

References:
[1] https://www.reddit.com/r/electricvehicles/comments/1mr0bhy/tesla_leads_price_cuts_as_us_ev_sales_post/
[2] https://www.thestar.com.my/tech/tech-news/2025/08/20/a-deadly-crash-and-musk039s-exaggerations-inside-two-lawsuits-over-tesla039s-self-driving-tech