Tesla Drops Updated U.S. Incentives With EV Tax Credit Set to Expire

Tesla Drops Updated U.S. Incentives With EV Tax Credit Set to Expire originally appeared on Autoblog.

An overview of Tesla’s new incentives running through September 30

Tesla has ramped up its incentives ahead of the federal electric vehicle (EV) tax credit’s expiration date on September 30, with some applying to the automaker’s entire new inventory, and others remaining model-specific. If you’re not fully committed to the idea of owning a Tesla, you can receive a $7,500 lease incentive on any of the company’s new vehicles.

Tesla is also bundling any new vehicle transaction with $1,000 off for military, first responders, teachers, and students, a free month of Full Self-Driving (FSD), a complimentary FSD transfer from a current Tesla, and a Premium Connectivity trial. Premium Connectivity enables drivers to access all their vehicle’s connectivity features over cellular, in addition to Wi-Fi. A Model Y or Model 3 purchase or lease gives you Premium Connectivity for 30 days, while a new Model S, Model X, or Cybertruck comes with a one-year trial of the service. Tesla is offering one free trim upgrade with a Model Y, Model 3, and Model S, and those considering leasing a new Cybertruck may be intrigued by the EV’s free 20” Cyber Wheel upgrade, which is a $3,500 value.

You’ll be able to score the $7,500 federal tax credit at the point of sale with a Model Y, Model 3, Model X, or Cybertruck, but not the Model S. Model Y cash purchases receive 18 months of free Supercharging. Drivers seeking lower APR can finance a Model Y at 3.49% for up to 60 months, a Model 3 at 0% with FSD, or 2.49% without, and a Cybertruck at 0% with FSD. Regarding model-specific lease rates, a new Model Y is available from $349 per month for 24 months, or $399 per month for 36 months with $3,000 down, and the Model 3 is offered from $299 per month for 24 months, or $349 per month for 36 months with $3,000 down. Tesla’s updated incentives are valid for vehicles delivered before September 30.

Tesla has plenty of EV incentive competition this month

Tesla is far from the only automaker increasing its EV incentives this month. Some of these automakers and their EVs that still qualify for the $7,500 federal tax credit include the Acura ZDX, Chevrolet Blazer, Equinox, and Silverado EVs, Honda Prologue, Hyundai Ioniq 5 and Ioniq 6, Jeep Wagoneer S, and Kia EV6 and EV9.Acura is offering 0% financing for 72 months for its ZDX, while Chevrolet’s Blazer, Equinox, and Silverado EVs are available with 0% financing for 60 months, plus a $1,000 cash incentive. The Honda Prologue comes with $7,500 lease bonus cash or 0.0% financing for 60 months, and you can get a Hyundai Ioniq 5 and receive up to $7,500 cash back or $7,500 lease bonus cash. Drivers can bundle a Hyundai Ioniq 6 with up to $7,500 cash back, 0.0% financing for 48 months, or $7,500 lease bonus cash, or opt for a Kia EV6 or EV9 with $5,000 in cash back or 0.0% financing for 60 months. EV incentives can vary by market and have different expiration dates, so check a manufacturer’s website for more information on offers for models near your zip code.

Final thoughts

Tesla’s latest incentives are casting a wider net ahead of the federal EV tax credit’s expiration by mixing general offers with model-specific perks. Some worry about how Tesla will fare after its incentives phase out, including those from the federal government, but intensifying competition from other automakers in the EV space has also created a price war, posing more immediate sales challenges. These challenges are compounded by China’s EV price war and Tesla’s struggles following a rough first six months of 2025.

Tesla Drops Updated U.S. Incentives With EV Tax Credit Set to Expire first appeared on Autoblog on Jul 22, 2025

This story was originally reported by Autoblog on Jul 22, 2025, where it first appeared.