Tesla has wasted no time responding to the expiration of the $7,500 federal EV tax credit — and its counterattack is bold.

Just hours after the subsidy officially ended, the company rolled out a $6,500 internal lease credit, automatically applied to qualifying vehicles.

The message is clear: Tesla is not surrendering market share without a fight.

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🚘 The $6,500 Lease Credit Strategy

Instead of waiting for demand to drop, Tesla is proactively softening the blow for customers who choose to lease.

According to the company’s website:

“Monthly lease payment already includes the $6,500 Tesla lease credit, which is subject to change or end at any time. Order does not guarantee eligibility.”

This move nearly offsets the lost federal incentive — but it comes at a cost.
By absorbing much of the discount internally, Tesla could see pressure on its profit margins.

The big question:
How long can Tesla afford to sustain this incentive?

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📈 Lease Prices Quietly Increased

Interestingly, Tesla also adjusted lease pricing after midnight when the tax credit expired.

🚙 Model Y

• Previous: $479–$529/month

• New: $529–$599/month

🚗 Model 3

• Previous: $349–$699/month

• New: $429–$759/month

(Default terms: $3,000 down, 36 months, 10,000 miles/year.)

While the lease credit cushions the impact, base pricing has climbed by as much as 11%.

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🔥 The Bigger Picture: Sales Pressure Mounts

The tax credit removal, backed by the Trump administration and supported by CEO Elon Musk, has sparked widespread debate in the EV community.

However, the full impact may not appear until Q1 2026, since orders placed before September 30 still qualify for the credit.

Leases, however, required delivery before expiration — meaning many customers may now hesitate.

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⚖️ INSIDE TESLA: Engineer Alleges Threats, Retaliation & Deportation Fears

A former Tesla engineer, Cristina Balan, has reignited controversy with serious allegations dating back to 2014.

Balan claims she raised a brake safety concern involving floor carpets potentially curling beneath the pedals of the Tesla Model S.

She says instead of addressing the issue, Tesla lawyers pressured her to resign — allegedly threatening immigration consequences for team members awaiting green cards.

Balan, now in remission from stage 3 breast cancer, has described Musk as “pure evil” in interviews and continues a decade-long legal battle seeking a jury trial.

Tesla previously accused her of misusing company funds — claims she denies.

Her appeal victory last week may reopen the case.

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👑 Tesla Loses EV Crown to China’s BYD

For the first time, Tesla is no longer the world’s top EV maker.

BYD outsold Tesla in 2025 as global EV sales surged 28%.

📊 2025 Delivery Numbers

• Tesla: 1.64 million vehicles (down from 1.79M in 2024)

• Q4 Deliveries: 418,227 (below analyst expectations)

• Stock performance: +11.4% in 2025

Meanwhile, BYD reported explosive international growth, with 1 million vehicles sold outside China — up 150% year-over-year.

Tesla now faces:

• Intensifying European competition

• Rising average EV prices in the U.S.

• Brand backlash

• Expired federal incentives

Yet investors remain focused on Tesla’s robotaxi ambitions and AI future rather than short-term delivery declines.