Tesla’s recent launch of the Model 3 Highland in North America has revealed an interesting leasing advantage tied to a commercial vehicle loophole. Customers exploring the updated Model 3 Highland configurator page noticed a $7,500 incentive specified for leases, presenting an affordable option for potential lessees.
According to Tesla, the $7,500 EV lease incentive will be spread across the lease term. This results in monthly lease payments of $329 (excluding taxes and fees), with an effective reduction to $246 per month when factoring in potential savings.
The key lies in leveraging the Inflation Reduction Act’s (IRA) tax credit qualifications for commercial vehicles. Unlike electric vehicles purchased for personal use, commercial vehicles do not adhere to the same eligibility requirements. The full $7,500 tax credit for EVs usually requires compliance with the IRA’s assembly and battery specifications. Notably, these requirements do not apply to commercial vehicles.
The Treasury Department’s stance on leased vehicles adds another layer to this advantage. Leased vehicles, considered commercial transactions as ownership doesn’t transfer to the lessee, align with the IRA’s definition of commercial vehicles. Consequently, the Tesla Model 3 Highland, if leased, could qualify for the $7,500 credit under the IRA.
Available in the United States, Canada, Mexico, and Puerto Rico, the Model 3 Highland offers two variants: the RWD starting at $38,990 and the Dual-Motor AWD priced at $45,990 before additional options. The recent update to the Model 3 order page indicates delivery estimates for the refreshed units are scheduled between January and February 2024.