Tesla slashes lease pricing on Model 3/Y, expects to lose half tax credit on 3

Published

2 years ago

October 12, 2023

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Hot on the heels of a price drop that makes the Model 3 the cheapest Tesla yet, Tesla has also cut the base lease pricing for Model 3 and Y by $90/month and $100/month respectively.

But the company also now says that it “expects” to lose access to half of the US $7,500 federal tax credit at year’s end, reducing that credit down to $3,750.

Tesla has continued to cut its prices throughout this year, with Model 3 getting another $1,250-$2,250 cut just last week and Model Y LR and Performance trims getting a $2K price cut.

But those price cuts throughout the year didn’t really manifest in lease pricing. Tesla has never really focused on leasing, and lease prices have always been a bit higher on a Tesla than on similarly priced EVs. Last quarter, for example, only about 5% of Tesla’s sales were leased, which is far below the industry average.

But that might be changing with a significant price cut today for Tesla’s leased vehicles.

Last week, Tesla quoted a monthly payment of $419/month for the Model 3 and $499/month for the Model Y on each base model. But today we’re seeing payments of $329/month and $399/month respectively, with the same down payment ($4,500), term (36 months), and mileage (10k/yr) as the previous prices were quoted.

Other trims have seen similar reductions of $70-$90/month off.

Tesla has now placed leasing front-and-center on the Model 3 and Model Y order pages, with the right side of the screen featuring purchase price (or Tesla’s misleading “probable savings” price), and the bottom portion quoting lease pricing, where it used to simply show the purchase price again. It is also easier to access a calculator for leasing/financing options by clicking on that bottom portion.

While Tesla’s website doesn’t state this openly, this price drop could have something to do with the way the EV tax credit works, which allows almost all of its restrictions to be bypassed by leasing vehicles. Most companies have taken advantage of this and are now passing along these lease savings to customers, but Tesla never did.

Again, we don’t know if it’s starting to do this now and passing the savings along, or if it’s still keeping those credits for itself and this lease price reduction is just reflective of the falling prices of Tesla vehicles anyway.

Tesla ‘expects’ to lose half of US tax credit on Model 3

But now it also looks like Tesla expects prices to increase at the end of the year – well, effective prices anyway, given that it now “expects” that half of the tax credit is going away for the Model 3.

The reason for this is that the Inflation Reduction Act tax credits are limited to cars with battery components and raw materials that come from the US or from a free trade partner. The restriction gets stricter each year, and it looks like Tesla thinks it won’t qualify for half of the credit with next year’s tightening of restrictions.

Tesla’s Shanghai factory has been producing Model 3s and components for Model 3s for quite some time now, having produced its 2 millionth EV last month. Some of those components include LFP batteries that make their way into Tesla’s base model vehicles and are made in China, which could be the reason for the reduction.

Before today, Tesla’s website stated on the Model 3’s order page that “reductions are likely after Dec 31.” Other models had seen the same warning at times, but currently the Model Y does not have that warning, rather saying, “Take delivery by Dec 31 for full $7,500 tax credit.”

But today Tesla has changed that warning to say: “$7,500 tax credit expected to reduce to $3,750 on Dec 31 pending federal guidance. Take delivery to guarantee full incentive.”

That said, Tesla has had a confusing history with this portion of the tax credit in the past. At first, the base Model 3 did not qualify for the full $7,500 tax credit upon the IRS’s release of battery guidance, though only a month and a half afterward, Tesla surprised by gaining access to the full credit on the base Model 3. Soon after that, it added the “reductions likely” language to its website, which it has now upgraded to “expected” for the Model 3.

Other models no longer say “reductions likely” – Model Y states, “Take delivery by Dec 31 for full $7,500 tax credit,” but doesn’t include similar language about reductions being likely or expected.

All this talk about tax credits is complicated and may not apply to every buyer, since every buyer can’t necessarily take advantage of the full credit due to the current credit being nonrefundable. But that too is changing on January 1, 2024, when the tax credit will be available upfront at the point of sale, and will then allow lower-income buyers to gain the full credit even if they don’t have enough tax liability to do so, as the IRS confirmed last week.

This might otherwise be a boon for some trying to take advantage of Tesla’s new lower prices, but with this “expected” halving of the tax credit on Tesla’s cheapest model, that news is somewhat bittersweet.

Electrek’s Take

That said, there’s always the chance that this language is just a play by Tesla to sell more cars. There are two potential reasons one might think this: First, Tesla just had a disappointing quarter and may be looking to boost sales. It seemed to know ahead of time that that quarter might be disappointing, too, given its craven limited-time FSD transfer scheme, which seemed targeted solely at boosting sales, rather than doing what’s right for customers who purchased a system several years ago that still doesn’t do what Tesla said it would do.

Second, Tesla just released the highly anticipated Model 3 Highland refresh in Europe, but that isn’t expected to come to the US until early next year. This could mean some buyers want to delay and purchase the new Model 3 with all the new features, but may be lured into buying early with Tesla dangling price drops and potential loss of tax credits in front of them.

Just like when Tesla originally added the “reductions likely” language, which we called “self-serving,” the vagueness of exactly why these credits were gained in the first place, and why they might be lost, makes it difficult to understand what the reason for the credit reduction is, and whether Tesla might just be yanking our chain. A little clarity on this would be nice from Tesla’s, uh… PR department…

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Wheel-E Podcast: Tenways cargo e-bike, Lime mopeds, EUCs, more

Published

2 hours ago

April 25, 2025

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Wheel-E Podcast: Tenways cargo e-bike, Lime mopeds, EUCs, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a new cargo e-bike launch from Tenways, Lime bringing its new e-bike and e-moped to its larger fleets, testing a 100 mile e-bike, California’s e-bike vouchers are set to open again in another lottery round, a new electric unicycle from InMotion, and more.

Today’s episode is brought to you by retrospec—makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure. Electrek listeners can get 10% off their next ride until May 8th with the exclusive code ELECTREK10 only at retrospec.com.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

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After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):

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Redditor: my Polestar 2 window stopped a bullet from hitting me [pictures]

Published

11 hours ago

April 25, 2025

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Redditor: my Polestar 2 window stopped a bullet from hitting me [pictures]

This one’s pretty simple, kids – it’s exactly what it says on the tin: a Polestar 2 owner took to the Polestar subreddit this week claiming that the window glass in his new EV actually stopped a bullet from hitting him. Plus, he says he’s got the pictures to prove it. (!)

The brand may be evolving into its own, but the OG Polestar 1 and Polestar 2 were little more than hot electric versions of Volvo cars – and Volvo cars are known throughout the world for their secure, planted feel on the road and absolutely bananas high-tensile steel safety cages. As such, it should come as no surprise that the Polestar 2 is one of the safest sedans on the road today … but is the car really bulletproof?

That’s what one redditor is claiming after his window was hit by what they believed to be a stray bullet just five days after taking delivery.

Polestar stopped a bullet.
byu/CptMerica29 inPolestar

Now, as the growing brand rivalry between Polestar fans and their Tesla-driving counterparts might lead you to expect, some of the comments are pretty pointedly referencing Tesla – and pretty funny. Here are a few of my favorites:

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Comment
byu/CptMerica29 from discussion
in Polestar

Now, that was fun, sure – but it’s worth noting that a number of commenters claiming alternately that there’s no way this was a .22 caliber bullet (certainly not a .22 WMR) or that it was a stray shot from very far away. The consensus seems to be that a .177 caliber air gun pellet is most likely to blame, but my money is on a small piece of stone or gravel kicked up at a weird angle from a nearby vehicle.

Regardless, it seems like CptMerica29 is A-OK, and their Polestar 2 hardly seems worse for wear, either. Here’s hoping it’s the last time we have to have a debate about what kind of bullet was being fired at an EV driver for a long time.

If you’d like to try your hand at driving a Polestar 2 through a volley of flying debris and other assorted projectiles and letting us know how you do, click the link below to score a great deal on one near you (while you still can):

Disclaimer

I would like to believe this is obvious, but there’s a “do not use batteries as toothpaste” sticker on this pack of Duracell batteries for a reason, so I’m going to err on the side of caution here and tell any of you reading the above and taking it seriously that: I am kidding. That was a joke.

To be clear, it is my position that NO VEHICLE this side of a Mercedes-Benz EQS GUARD or Inkas Armored S Class is actually bulletproof – and that, yes, a .22 is a real gun with plenty of lethal stopping power and, also yes, a pellet gun can and has killed a lot of people. DO NOT SHOOT AT CARS, and do not sit in your cars and let others shoot at you if you can at all avoid it.

As getsome75 so eloquently puts it:

Comment
byu/CptMerica29 from discussion
in Polestar

Stay safe out there, kids.

SOURCE | IMAGES: CptMerica29; featured image via Polestar.

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Slate emerges with customizable EV pickup available for under $20k [Video]

Published

11 hours ago

April 25, 2025

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Slate emerges with customizable EV pickup available for under $20k [Video]

After about a month of speculation and subtle hints from industry insiders, American EV startup Slate has emerged from stealth to share its flagship model with the world. This simplified all-electric pickup arrives with over 100 accessories, a five-seat SUV configuration kit, and get this… crank windows. Even better, this no-nonsense pedigree of EV is priced refreshingly low, starting below $20,000 after US tax incentives.

As we pointed out last month, there was much more we didn’t know than we could confirm about a new EV brand called Slate. The American automaker was verified as an official business on LinkedIn as of March 5, giving us a sparse trail of breadcrumbs to follow to learn more.

According to the page, Slate had already established a team of 200 to 500 employees, and 46 additional open roles were listed. Some open jobs, such as plant manager and suspension engineer, hinted that Slate has been working on at least one EV.

Aside from promising “the next generation of innovation in the industry” (despite not confirming what industry), Slate’s website stated that we would learn more on April 24. We had heard rumblings that the Troy, Michigan-based startup was on the cusp of debuting a simple, all-electric pickup.

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However, that wasn’t confirmed until two days ago, when the first real-world images of the EV emerged ahead of Tesla’s earnings call. Our readers pointed out that “Slate” is an anagram of “Tesla,” which offers interesting fodder to the conspiracy theory scene at best.

While Slate’s name may be a tongue-in-cheek nod to reimagining an EV industry Tesla championed early on, the name seems more rooted in the fellow American company’s clean slate approach to EV design. From what we’ve now seen, Slate is breaking from the trend of other startups kicking off market entry with top-tier, luxe models starting in the $80-$100k range.

Instead, it has created a no-nonsense EV pickup that starts at a super low price, leaving the upgrades and customizations to the customer. Better still, if you US customers prefer a five-seat option, Slate also offers that. See below:

Slate debuts EV that can be 2-seat pickup or 5-seat SUV

Slate has officially arrived and, in my opinion, is a welcome breath of fresh air (because of no emissions, of course) to an American EV industry that is growing by the day, but has yet to reach critical mass in adoption.

Much of that struggle relates to pricing (not to mention lackluster local charging infrastructure). Most EVs are not affordable enough for the average consumer yet, and to get an electric pickup like Slate is now offering, for example, you have to opt for a model from Ford, GM, or Rivian that will cost at least $63,000 and will easily go up from there with added features like range.

Instead of coming out swinging against the big boys, Slate has dug itself a nice little niche in simplified affordable EVs that are modular and customizable. Slate’s first CEO, Chris Barman, elaborated:

The definition of what’s affordable is broken. Slate exists to put the power back in the hands of customers who have been ignored by the auto industry. It is a radical truck platform so customizable that it can transform from a 2-seat pickup to a 5-seat SUV.

Steel wheels, HVAC knobs, and crank windows – Slate is most certainly taking a clever approach to affordable US EVs for all. Designed to be “approachable and timeless,” the startup flagship model is truly a black slate canvas that puts the brush in the hands of its customers.

The company shared it will offer over 100 accessories, available a la carte or in a bundle, available from your initial order or years down the road. The dash also includes a universal phone mount with USB power, enabling you to use whatever smart device and OS you’d like. Have it custom wrapped by the Slate team or do it yourself, Slate is not only offering variety to customization, but also the process by which it is achieved.

Another example is Slate’s flat pack SUV Kit, which turns the EV pickup into a 5-seat SUV, complete with a roll cage, airbags, and rear seat. Again, you’ll have the choice to have Slate integrate it in Michigan or do it yourself, adding a bit of a DIY “gearhead” philosophy the EV segment has lacked since day one.

“But Scooter, what about specs?” Don’t worry my friends, we got you:

Dimensions:
- Length: 174.6 inches
- Wheelbase: 108.9 inches
- Width: (w/o mirrors): 70.6 inches
- Height: 69.3 inches
- Pickup Interior Volume: 55.0 ft³
- SUV Interior Volume: 80.5 ft³
- Frunk Cargo Volume: 7 ft³
- Bed Cargo Volume: 37 ft³
- SUV Cargo Volume (behind seats): 34 ft³
Weights:
- Curb Weight: 3602 lbs.
- Max Payload: 1433 lbs.
- Max towing: 1,000 lbs.
Power and Battery:
- Powertrain: Single motor, RWD
- Battery: 52.7 kWh (standard) or 84.3 kWh (add-on)
- Power: 150 kW (201 hp)
- Torque: 264 Nm (195 lb-ft)
- Acceleration (0-60 mph): 8 seconds (est.)
- Top speed: 90 mph
Charging and Range:
- Onboard charger: 11 kW
- Level 1 AC: 3.6kW / 20-100% in 11 hrs.
- Level 2 AC: 11kW / 20-100% in under 5 hrs.
  Level 3 DC: 120kW / 20-80% in under 30 mins.
- Charging Configuration: NACS
- Standard Range (52.7 kWh) (est.): 150 miles
- Large Pack Range ((84.3 kWh) (est.): 240 mi.
- Combined city/highway (est.): 96 MPGe
Bed Dimensions (Pickup):
- Bed width (between wheel wells): 42.9 inches
- Bed Width Min./Max.: 50.0 inches /54.9 inches
- Bed Length: 60.0 inches
- Bed Length (Tailgate Down): 81.6 inches

According to Slate, its flagship EV will be sold directly to consumers and is available to reserve now with a $50 deposit. The trucks will be built in the US and start at an MSRP below $20,000 (after federal tax incentives). No timeline on when production may begin, but a representative for Slate told Electrek that initial customer deliveries are… slated to begin in Q4 2026. Not too shabby.

While we await more details regarding this new American brand, here’s a better look at Slate’s first EV from a video it provided below:

Source: Slate

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