Tesla Launches Lease Option For Model Y SUVs At $499 A Month

Tesla Inc. (NASDAQ: TSLA) has started offering its Model Y electric sports utility vehicle for leasing, the automaker's website suggests. 

What Happened

The launch of Model Y leases has begun relatively early, as the Elon Musk-led company didn't launch leases for its Model 3 vehicle until two years after it went into production, Electrek reported earlier.

The leasing option is said to be the cheapest way to drive the Model Y with a downpayment of $4,500, and a monthly outlay of $499.

Tesla has kept the duration of the lease at 36 months with a 10,000-mile allotment.

Why It Matters

The leases are likely to drive demand higher for the electric SUV, although it is not an indicator of declining demand itself, Electrek noted.

Last week, Tesla announced the temporary shutdown of its Fremont factory for carrying out upgrades to vehicle assembly lines.

The automaker is reportedly putting in a new assembly line at the California plant. This upgrade is similar to the one it had carried out during the ramp-up in the production of Model 3 vehicles. 

With a slash in the prices of Model Y by $3,000 and a robust demand, the EV manufacturer may need to build more of such SUVs at its factories. 

The additional manufacturing infrastructure at Fremont is being attributed to Tesla's effort to boost Model Y production, according to Electrek.

Price Action

Tesla shares closed mostly unchanged at $1,500.84 on Friday and added another 0.4% in the after-hours at $1,506.78.