Tesla May Soon Introduce Model 3 Leases

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Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

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, Automotive Editor - February 22, 2019

Ever since the federal tax credit for Tesla's vehicle's got cut in half at the end of last December, the electric automaker has been attempting to slash prices and draw in new buyers. While Tesla allows consumers to lease the Model S and the Model X, a lease option doesn't exist for the Model 3. But that might change in the near future.

According to a report by Electrek, Tesla could offer a lease option for the Model 3 within the next two weeks. Unnamed sources sent an official Tesla email to the outlet that stated the automaker's future plans about leasing for the Model 3. A Tesla spokesperson also gave Electrek a statement on the email.

“This is simply an internal document to ensure teams are prepared for when we eventually introduce a leasing option to customers,” stated the spokesperson. “No decision has been made about when Model 3 leasing will be available, but it will definitely be after the dates outlined in this document.”

As stated earlier, Tesla offers leasing options on the Model S and the Model X. Tesla's current lease offerings for the vehicles include a three-year program with 10,000, 12,000, or 15,000 miles annually. The automaker requires a $7,000 down payment, a $695 acquisition fee, and the first month's payment when the vehicle is picked up. According to Tesla's website, if you wanted to lease a Model S 100D for 10,000 miles a year for 36 months, the monthly payment would be $1,334.

The idea to not offer a leasing option on the Model 3, according to CNBC, boils down to the way it makes Tesla's finances look. During the company's fourth-quarter earnings call, Tesla CEO Elon Musk told the outlet that the company was hesitant on adding the Model 3 to the brand's list of vehicles that can be leased because of the effect it will have on GAAP financials

Tesla Model 3

As of right now, the best way to get a hold of a Model 3 is to buy a new one. And since Tesla doesn't have a traditional dealership, the best way to go about getting one is to order one online and wait for it to be shipped to your local service center. Unfortunately, you can't buy a Tesla in every state, and since there are a lot of states that prohibit the direct sales of cars to consumers, it's easier to know which state you can actually purchase one of the electric cars in.

Those states include California, Washington, Nevada, Arizona, Utah, Colorado, Hawaii, Minnesota, Missouri, Illinois, Indiana, Ohio, Pennsylvania, New York, Massachusetts, New Jersey, Maryland, Virginia, North Carolina, Tennessee, Georgia, and Florida. While these are the only states you can buy a Tesla in, the automaker has galleries in some other states.

Last December, the federal tax credit for a Tesla was cut in half – from $7,500 to $3,750 – as the automaker hit the 200,000 electric-vehicle cap last July. In July 2019, the tax credit will once again get cut in half to $1,875. Consumers that purchase a Tesla in 2020 won't be eligible for a tax credit.

Learn more about Tesla's current lineup

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter | Website