Tesla stock closes higher as company rolls out new discounts ahead of tax credit expiry

Investing.com -- Tesla Inc (NASDAQ:TSLA) stock rose 3.2% today after the electric vehicle maker introduced a comprehensive package of discounts and incentives for its U.S. customers ahead of the expiration of federal tax credits.

The company unveiled numerous promotions including a $7,500 lease incentive on qualifying vehicles delivered by September 30, reduced monthly lease payments, and lower financing rates. Tesla is also offering free upgrades on select inventory models and a $1,000 discount for military personnel, first responders, teachers, and students.

These aggressive incentives come as Tesla faces declining sales in major markets like Europe and China, with the U.S. being its last strong market. However, with the $7,500 federal tax credit for electric vehicles set to expire at the end of the quarter, Tesla appears to be maximizing sales while the benefit remains available.

Among the most notable offers are reduced lease rates, with Model Y monthly payments dropping from $399 to $349 with $3,000 down for 36-month terms. The Model 3 lease has been cut from $349 to $299 monthly with the same down payment for 24-month terms.

Financing terms have also been sweetened, with APR rates on Model Y reduced from 5.54% to 3.49% for up to 60-month financing. The company is even offering 0% APR financing on some models when customers purchase the Full Self-Driving (Supervised) package.

For Cybertruck buyers, Tesla is including free 20-inch Cyber Wheel upgrades with all-terrain tires (valued at $3,500) on inventory lease orders, while Model S and Model X All-Wheel Drive purchasers can receive their highest-priced exterior or interior upgrade for free when adding Full Self-Driving.

The company has labeled these offers as limited-time promotions, with many tied to delivery by September 30, coinciding with the end of the third quarter and the federal tax credit expiration date.

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