Tesla boosts leasing costs for Model Y Long Range models in the United States
Tesla Announces Lease Price Increase for Model Y
Tesla has recently made changes to the lease prices of its Model Y vehicles in the United States. As of August 9, 2025, the starting lease price for the Model Y Long Range All-Wheel Drive (AWD) has been increased to $449 per month, marking a $50 increase over the previous $399 per month rate. The starting lease price for the Model Y Long Range Rear-Wheel Drive (RWD) has also increased, going from $349 to $399 per month.
These changes were confirmed by Raj Jegannathan, AI and IT Infrastructure Engineer at Tesla, who also stated that there will be no additional end-of-quarter discounts beyond what Tesla is already offering in the U.S. This move appears to mark a departure from Tesla's traditional practice of offering end-of-quarter discounts to encourage last-minute orders.
In addition to these changes, Tesla's online configurator has been updated to reflect extended delivery estimates for custom orders in many locations. These estimates are now one to two weeks longer than before. Prospective buyers may want to order sooner rather than later if they want to take delivery before the end of Q3, considering the extended delivery timelines and the absence of further discounts.
The new lease terms for the Model Y Long Range AWD include a $3,000 down payment over 36 months and a 10,000-mile annual limit. Other reported offers show $499/month in some promotional contexts with different down payments or arrangements, but $449 is the newly noted starting price after the increase.
It's important to note that these changes do not affect Tesla's lease offering for the Cybertruck, as the company has begun allowing customers to buy out any lease at the end of their term, giving lessees more flexibility than in years past.
With the federal EV tax credit for Tesla vehicles set to expire on September 30, 2025, locking in a Tesla order now may be the safest bet to avoid the Q3 delivery crunch and take advantage of the current tax credit.
[1] Electrek (2025). Tesla increases Model Y lease prices in the US [2] Tesla (2025). Tesla Model Y Lease Price Increase [3] Tesla (2025). Tesla Model Y Long Range RWD Lease Terms [4] Tesla (2025). Tesla Model Y Long Range AWD Lease Terms
- The recent increase in the Model Y lease prices by Tesla affects the pricing of electric-vehicles in the automotive industry, potentially impacting car buyers' lifestyle and financial decisions.
- The updates in Tesla's lease terms for the Model Y Long Range AWD involve payments and mileage restrictions, adding a $3,000 down payment over 36 months and a 10,000-mile annual limit.
- Beyond the Model Y lease price adjustments, the company has also clarified there will be no additional end-of-quarter discounts for its transportation solutions, apparently following a shift in company strategy.
- Given the upcoming expiration of the federal EV tax credit for Tesla vehicles on September 30, 2025, choosing to buy a Tesla Model Y and securing a delivery before that date could offer a strategic advantage with the current tax incentives.
