Tesla makes sudden pricing change that could have big impact on potential buyers: 'Carmageddon'

Original story by: Yahoo Entertainment Last updated: Oct 17, 2025

Context: Tesla has significantly increased its monthly lease prices for electric vehicles in the United States. This change occurred shortly after the expiration of a federal EV tax credit, making it more challenging for consumers to afford new Teslas.
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Detailed Summary:
- The federal EV tax credit, worth up to $7,500, expired on September 30, leading to an almost immediate rise in Tesla's lease prices.
- For example, the 36-month lease price for a Model Y increased from $399 to between $449 and $599 per month. The Model 3 also saw a comparable price hike.
- These increased lease costs present a significant financial barrier for many families, potentially deterring them from switching to electric vehicles, especially those hoping to save on gas and contribute to environmental goals.
- Industry analysts express concern that the absence of government incentives could lead to a substantial decline in the EV market share in the U.S., potentially falling below 4%.
- Prior to the tax credit expiration, there was a surge in EV sales as consumers rushed to take advantage of the incentive.
- In response to the changing market dynamics, Tesla is introducing a referral program offering a $1,000 discount for both the referrer and the new buyer on select models.
- Despite the current challenges, the electric vehicle market remains competitive, with a variety of EVs available at different price points.