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October 02.2025

2 Minutes Read

Tesla's Lease Price Increases: What Small Business Owners Need to Know

Understanding the Impact of Changing EV Lease Prices

As businesses adapt to an increasingly green economy, many owners are considering electric vehicles (EVs) for their fleets. However, a recent shift in Tesla’s leasing prices due to the expiration of the federal EV tax credit signals a significant change in the landscape of electric vehicle affordability.

What Changed With the EV Tax Credit?

On September 30, the valuable $7,500 federal tax credit that incentivized EV purchases expired, contributing to a notable hike in leasing prices for Tesla vehicles. For instance, the monthly lease cost for the popular Model Y jumped from a range of $479 to $529 to now fall between $529 and $599. Similarly, leases for the Model 3 rose significantly, with new monthly ranges reported between $429 and $759, up from $349 to $699.

Why This Matters to Small Business Owners

The decision to lease electric vehicles often hinges on their affordability through incentives. With rising lease prices, small and medium-sized business owners may find it increasingly challenging to adopt electric vehicle technology, which is crucial for meeting sustainability goals.

The Broader Context of EV Adoption

As reported by Cox Automotive, Tesla’s market share has plummeted in recent months, dipping to 38% from a peak of over 80%. This decline illustrates a rising competition in the EV sector, which could be exacerbated by increasing lease prices. Businesses considering EVs need to weigh the benefits against these new costs carefully.

Looking Ahead: Purchasing or Leasing Decisions

For many businesses, the decision to lease or buy depends on various factors, including budget constraints and expected return on investment. With a growing number of EV options available, organic demand may shift towards more competitively priced alternatives. Business owners should evaluate what's most economical for their fleet needs before committing to an EV.

Take Action for Future Growth

Consider exploring various EV leasing companies that offer more competitive rates and benefits. Engaging with local dealerships proactively may yield better insights and possible negotiations to offset increased costs. As the auto industry transitions towards electric, understanding these shifts is vital for informed decision-making.

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