It’s suddenly more expensive to drive off in a Tesla Inc (NASDAQ:TSLA). The company has raised lease rates across its US line-up after federal tax credits for electric vehicles expired at the end of September.
The $7,500 subsidy for new EVs and $4,000 for used models, part of a broad legislative package, had been flowing through to customers in the form of cheaper monthly payments.
With those incentives gone, Tesla’s best-selling Model Y now leases for $529 to $599 a month, up from $479 to $529. The Model 3 jumped to $429-$759 from $349-$699. Purchase prices remain unchanged.
Analysts warn the loss of subsidies could dent demand at a time when growth in battery car sales is already cooling. Tesla’s share of the US EV market slipped to 38% in August, according to Cox Automotive, less than half the dominance it enjoyed just a few years ago.