Tesla has raised lease prices for all its vehicles in the U.S. after a $7,500 federal tax credit that helped boost electric vehicle sales expired, according to the company’s website on Wednesday.
The change follows the end of tax incentives under sweeping legislation passed by Congress, which eliminated the $7,500 credit for new EV leases and purchases, as well as a $4,000 credit for used EVs, effective September 30.
Tesla and its rivals had been passing these credits on to customers through competitive lease offers.
The monthly lease of the electric vehicle manufacturer’s best-selling Model Y increased to a range between $529 and $599, from a range of $479 to $529. Prices of all vehicles, however, remain unchanged.
Model 3 lease prices touched a range of $429 to $759 per month, from a range of $349 to $699.
Demand for battery-powered models is already showing signs of a slowdown after rapid growth earlier in the decade. Sales could drop after the credits dry up, auto executives and analysts have warned.
Reuters reported last month that Tesla’s U.S. market share dropped to a near eight-year low in August, as buyers chose electric vehicles from a growing stable of rivals, according to data from research firm Cox Automotive.
Tesla, which once held more than 80% of the EV market in the United States, accounted for only 38% of the country’s total EV sales in August, according to early data from Cox.
—By Nilutpal Timsina and Kanjyik Ghosh, Reuters