The U.S. electric vehicle subsidy is phasing out, and Tesla raises the leasing prices for Model 3/Y

According to the official website of Tesla (TSLA.US) on Wednesday, with the termination of the $7,500 federal tax credit policy, the company has fully raised the leasing prices for all models in the U.S. market.

This price adjustment stems from comprehensive legislation previously passed by the U.S. Congress, which officially expired the related tax incentives on September 30. The expired incentives include not only the $7,500 credit for newly purchased and leased electric vehicles but also the $4,000 credit for used electric vehicles.

Previously, Tesla and its competitors had been passing these tax credit benefits on to consumers by offering competitive leasing plans. After the price adjustment, the monthly lease for Tesla's best-selling Model Y has increased from the original range of $479-$529 to a new range of $529-$599; the monthly lease for the Model 3 has risen from $349-$699 to $429-$759. However, the retail prices for all models have not changed.

Automotive industry executives and analysts have warned that after a period of rapid growth in electric vehicle demand at the beginning of this decade, signs of a slowdown are now evident, and with the cancellation of the tax credit policy, electric vehicle sales may further decline.

Additionally, according to research firm Cox Automotive, Tesla's share of the U.S. electric vehicle market fell to its lowest point in nearly eight years in August. This change is set against the backdrop of an increasing number of electric vehicle models launched by competitors, providing consumers with more choices. Preliminary data from Cox Automotive shows that Tesla once held over 80% of the U.S. electric vehicle market, but its market share has dropped to just 38% in August of this year