Tesla cuts Model Y lease prices to boost U.S. sales

Tesla has dropped the lease price for the Model Y Long Range Rear-Wheel Drive in the U.S. The new deal starts at $399 per month with $1,000 down. This offer is listed on Tesla’s official site and is available through June 30, 2025. The lease term is 36 months and includes 10,000 miles per year.

Another version of the same offer appears with a $3,000 due-at-signing cost. That version may reflect taxes, fees, or other region-based costs. The monthly rate remains $399 in both setups.

Model Y sales drop in Q1 2025

U.S. deliveries for the Model Y hit 64,051 in the first quarter of 2025. That’s a drop from 85,506 in the last quarter of 2024. The decline is tied to factory upgrades and buyers holding off for the upcoming Model Y “Juniper” update.

Still, the Model Y is the top-selling electric vehicle in the U.S.

Lease undercuts gas SUV pricing

This new lease offer puts the Model Y in the same price range as some popular gas SUVs. For example, a Toyota RAV4 LE lease averages around \$416 per month in Southern California. Tesla’s $399 offer comes in lower.

Tesla offers different payment structures to meet more budgets. The zero-down lease is listed at about $491 per month. State rebates may help too. In Massachusetts, a $3,500 rebate for eligible electric vehicles can reduce the total cost.

Extras may vary

Some regions may offer extra perks like free Supercharging, 0% financing, or Full Self-Driving trials. Tesla doesn’t show these on the main lease page, so availability likely depends on location or time of purchase.

This lease drop is part of a larger pricing shift. Tesla is offering similar deals in Europe and China. The company is working to stay ahead as more electric vehicles enter the market.

These offers can change without notice. Anyone thinking about leasing a Model Y should check Tesla’s official site to see what applies to their area.

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