Tesla has launched its first used car leasing program for Model 3 and Model Y vehicles in California and Texas, offering no down payment and monthly payments under $225, aiming to boost vehicle turnover before the end of September when federal EV tax credits expire.

This initiative is part of Tesla's strategic shift to maintain competitiveness and expand access to EVs amid regulatory and market changes, with the pilot in California and Texas leveraging these states' large EV markets and infrastructure.

The leasing program is designed to help Tesla move inventory quickly, especially as the company faces a slowdown in sales and a decline in used vehicle prices, partly due to political controversies involving its CEO.

The program offers flexible terms, including 12- or 24-month leases with low monthly payments, and is accessible through Tesla's online platform, making it easier for consumers to participate.

Compared to other affordable lease options, Tesla's deal stands out because of its advanced tech features, reliability, and the potential for self-driving capabilities, with monthly costs lower than the average American fuel expense.

Tesla is also preparing to roll out a significantly more advanced Full Self-Driving system, FSD V14, in about six weeks, which Elon Musk has described as feeling 'more human'.

Public reactions to Tesla's leasing initiative are mixed, with some praising the affordability and flexibility, while others view it as a sign of desperation amid broader market challenges.

Industry experts believe this innovative leasing strategy could influence the automotive industry by making EVs more accessible and encouraging competitors to adopt similar flexible ownership models.

Meanwhile, the industry continues to see high demand for luxury hypercars, with Bugatti already sold out for the next four years, and customers waiting until 2029 for new models.

Tesla's Model Y L, which features a longer wheelbase and more spacious third row, is not expected to arrive in the U.S. until late next year, and may never be released due to the shift towards self-driving technology.

Tesla faces ongoing challenges in maintaining its EV market dominance, including the end of federal tax credits and recent regulatory setbacks, which could impact sales and inventory levels.

The company's brand perception has been affected by political controversies, contributing to a recent decline in used Tesla car prices, now below the U.S. market average.

Tesla's initial leasing pilot in California and Texas aims to refine the program before considering broader expansion nationwide, leveraging these states' large EV markets and existing infrastructure.