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Tesla Unleashes Aggressive Year-End Incentives With Free Upgrades, 0% APR & $0-Down Leases
Tesla emphasizes that all offers apply only to select inventory vehicles and deliveries completed by December 31, 2025.
Tesla is pulling out all the stops in the final stretch of 2025 with its most aggressive incentive package in years, aiming to clear inventory and spark demand after a turbulent year for EV sales. With the loss of the U.S. federal EV tax credit in Q3 and a noticeable dip in Q4 demand, the automaker is stacking discounts, financing perks and free upgrades in a full-force effort to boost deliveries before December 31.
Free Upgrades on Inventory Vehicles: Paint, Wheels, Interior & More
One of Tesla’s biggest hooks this season is the “Free Upgrade” offer on select inventory units of the Model 3 and Model Y. Vehicles already built with paid options—like premium Ultra Red or Quicksilver paint, 20-inch Induction wheels, or the white interior package—are now being sold without charging for those features.
Buyers can save between $1,000 and $2,500, depending on the option. For many customers, this effectively lowers the price of a higher-spec model without Tesla having to alter the base price.
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0% APR for 72 Months: Tesla’s Most Generous Financing in Years
Perhaps the biggest headline grabber is Tesla’s new 0% APR financing for 72 months on the Model 3 and Model Y. In today’s high-interest-rate environment, this is virtually unheard of—effectively making borrowed money free for buyers.
InsideEVs notes that the average APR for Prime borrowers currently ranges between 4.9% and 6.5%, meaning Tesla customers could save between $7,000 and $9,400 over the course of a typical loan. This unprecedented financing move signals that the automaker is serious about pushing metal out the door.
Tesla self-driving is incredible https://t.co/8aEr3GHnnt
— Elon Musk (@elonmusk) December 4, 2025
$0-Down Leases on Model Y: Drive Off for Nothing Upfront
For customers who prefer leasing, Tesla has introduced a $0-down lease for the Model Y—another first for the company. Previously, Tesla required a minimum down payment of around $3,000 to qualify for its best leasing rates. While monthly payments will be higher with no down payment, the barrier to entry has never been lower.
Tesla emphasizes that all offers apply only to select inventory vehicles and deliveries completed by December 31, 2025.
Industry analysts suggest Tesla’s sweeping incentives reflect a challenging sales landscape. The end of the $7,500 tax credit pulled demand forward into Q3, leaving Q4 unexpectedly soft. Combined with rising competition and shifting consumer sentiment, Tesla needs a powerful final push to match last year’s record Q4 deliveries of 495,000 vehicles.
While it remains unclear whether Tesla can replicate those numbers, these incentives are among the strongest the company has ever offered—and could meaningfully sway buyers still undecided in the final weeks of the year.
