The Tesla company has expand lease prices for all its vehicles in the United States following the expiration of a $7,500 federal tax credit that had previously supported electric vehicle sales, according to information on the company’s website on Wednesday.
The price adjustment comes after tax incentives provided under legislation passed by Congress ended on September 30.
The expired incentives included a $7,500 credit for new electric vehicle leases and purchases, as well as a $4,000 credit for used electric vehicles.
Tesla and its competitors had been passing these credits on to customers through fierce lease offers.
The monthly lease of the electric automobile manufacturer’s best-selling Model Y increased to a range between $529 and $599, from a range of $479 to $529. Prices of all vehicles, however, remain unchanged.
Model 3 lease prices touched a range of $429 to $759 per month, from a range of $349 to $699.
Demand for battery-powered models is already showing signs of a slowdown after rapid growth earlier in the decade. Sales could drop after the credits dry up, auto executives and analysts have warned.
Reuters reported last month that Tesla’s US market share dropped to a near eight-year low in August, as buyers chose electric vehicles from a growing stable of rivals, according to data from research firm Cox Automotive.
Tesla, which once held more than 80% of the EV market in the United States, reckons for only 38% of the country’s total EV sales in August, according to early data from Cox.
