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Tesla finally offers lease-to-buy options for Model 3 and Y, but it’s not available everywhere
Tesla is starting to offer the option to purchase its all-electric Model 3 and Model Y vehicles at the conclusion of a leasing period in some markets in Europe and Asia.
For some time, Tesla has not allowed owners to purchase their cars at the end of a leasing period. The car is to be returned to the automaker with no chance of a leaseholder buying out the car at the conclusion of the period. The car would be added to the company’s used inventory, to third-party resalers, or reserved for the future use of the Robotaxi fleet.
Tesla’s Leasing Program
Tesla’s leasing policy is one of the few automotive programs that is subjected to a required return policy at the conclusion of a leasing period. In its 2020 10-K filing with the SEC, Tesla details its process for receiving leased vehicles when the period is terminated.
The company states:
“Our used vehicle business supports new vehicle sales by integrating the trade-in of a customer’s existing Tesla or non-Tesla vehicle with the sale of a new or used Tesla vehicle. The Tesla and non-Tesla vehicles we acquire as trade-ins are subsequently remarketed, either directly by us or through third parties. We also remarket used Tesla vehicles acquired from other sources including lease returns.”
In some markets in the U.S., Canada, and Europe, Tesla did allow Model S and Model X leaseholders with the option to purchase the vehicle at the end of the lease period.
Tesla says:
“At the end of the lease term, customers are required to return the vehicles to us or for Model S and Model X leases in certain regions, may opt to purchase the vehicles for a pre-determined residual value.”
This program did not apply to the Model 3 or Model Y, as anyone who leased either of these cars would be required to relinquish possession of the vehicle with no chance of purchasing it at the end of the lease. However, Tesla added a new section to the 10-K in 2020, detailing the possibility of a lease-to-buy option in some markets in Europe and Asia, and it applies to the Model 3 and Model Y. The company writes, “This is not available with the Model 3 and Model Y,” on its website.
Lease-to-Buy Option for Model 3 and Model Y in Europe and Asia
Tesla added new language to the 2020 10-K filing that details its decision to allow lease-to-buy options on its vehicles in Europe and Asia.
The company wrote:
“We have outstanding direct leases and vehicles financed by us under loan arrangements accounted for as sales-type leases under ASC 842 in certain countries in Asia and Europe, which we introduced in volume during the third quarter of 2020. Depending on the specific program, customers may or may not have a right to return the vehicle to us during or at the end of the lease term. If the customer does not have a right to return, the customer will take title to the vehicle at the end of the lease term after making all contractual payments. Under the programs for which there is a right to return, the purchase option is reasonably certain to be exercised by the lessee and we therefore expect the customer to take title to the vehicle at the end of the lease term after making all contractual payments.”
In summation, Tesla is offering the option to buy a vehicle at the end of a lease in some markets. The customer has the option to return the vehicle as well in some cases, and Tesla is “reasonably certain” that the leaseholder will take possession of the vehicle title when the lease ends.
Teslarati obtained a list of the countries where this lease-to-buy option is available, according to the Online Design Studio. Some countries have explicit language that states the vehicle leaseholder must return the vehicle, while others indicate there is an option to purchase the car at the end of a lease. Some do not have any language that indicates what the leaseholder must do, which could indicate that the option to purchase the vehicle is available at the conclusion of the leasing period.
The countries where a lease-to-buy option is available are:
- Belgium
- Croatia
- Denmark
- France
- Italy
- the Netherlands
- Poland
- Taiwan
A few examples show that there is explicit language that indicates a lease can be purchased outright at the end of the period.
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- France’s Design Studio contains language that indicates the vehicle can be purchased outright at the conclusion of a leasing period.
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- Taiwan’s Design Studio explicitly states the vehicle can be bought outright at the end of a lease period.
Other Design Studio examples show that the vehicle must be returned to Tesla at the end of the leasing period.
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- Tesla does not give the option to buy the vehicle outright at the end of the lease in Germany.
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- Tesla explicitly tells U.S. leaseholders that they “forgo the option to buy your car at the end of the lease and must return it to Tesla after the lease term.”
Lastly, other Design Studios show no language either way, which seems to indicate the option to buy the car is available as the lease term expires.
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- Tesla Poland has no explicit language stating that the car must be returned to Tesla.
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- Tesla Italy also does not indicate specifically if the car should be returned to Tesla at the end of a lease.
Poland is one country where Tesla does not indicate whether the car is required to be returned at the end of a lease period. However, the option to buy the car at the end of the lease is available, according to one Polish Model 3 leaseholder who spoke to Teslarati. Model 3 leaseholder Szymon Janus said that Tesla does allow lease-to-buy options in his country of Poland, and at the end of the lease, can be purchased for “around 60% of the new car’s value,” he said. However, Tesla isn’t offering the lease-purchase option directly, it is operated through a bank, he says. This could be why Tesla has no explicit language depicting the required return of the vehicle at the lease’s end date.
Tesla has not revealed any further details within its 10-K filing that indicate whether the company will allow leased vehicles to be purchased at the end of a leasing period. However, it did detail some specific financial figures.
Tesla said:
“For the year ended December 31, 2020, we recognized $120 million of sales-type leasing revenue and $87 million of sales-type leasing cost of revenue.”
What do you think? Be sure to leave a comment below, or you can contact me directly at joey@teslarati.com or @KlenderJoey on Twitter.
For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.
Would you buy a Tesla phone ? pic.twitter.com/aaTwvvIJit
— Tesla Owners Silicon Valley (@teslaownersSV) October 6, 2023
Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.
It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.
Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.
The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.
Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.
The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.
SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.
There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.
The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.
Tesla revealed a major new Cybercab detail in a guide it released for First Responders, showing new territory in its beliefs and intentions for the ride-hailing-focused vehicle that entered production in April.
The First Responders Guide is released to give fire departments, paramedics, and other emergency personnel the proper guidance on what to do in the event of an accident, entrapment, or other situation that would require immediate attention.
On one of the pages of the First Responders Guide, Tesla revealed a stark detail about the Cybercab, which could help personnel enter the vehicle more easily in case of an emergency.
Tesla Cybercab has one important piece that AI4 cars might need for FSD
It shows Tesla has no intention of releasing any Cybercab units that were initially proposed for ride-hailing services for the general public with any manual controls, meaning a steering wheel or pedals:
“A Cybercab equipped with steering wheel, brake pedal, and an acceleration pedal is typically an engineering or test vehicle, and operates at SAE Level 2 autonomy. Cybercab is not typically equipped with a steering wheel or acceleration and brake pedals.”
New official Cybercab documentation from Tesla:
“A Cybercab equipped with steering wheel, brake pedal, and an acceleration pedal is typically an engineering or test vehicle, and operates at SAE Level 2 autonomy. Cybercab is not typically equipped with a steering wheel or… https://t.co/P6ut1mZyzr pic.twitter.com/yq6skl9s2J
— Sawyer Merritt (@SawyerMerritt) June 27, 2026
This is a major development for those who continue to believe Tesla planned to release the Cybercab with any sort of manual controls so that passengers could take over if needed. However, when Tesla started manufacturing production versions of the Cybercab in Giga Texas earlier this year, they were spotted without a steering wheel or pedals.
It essentially confirms the company has no intentions of bringing manual controls to the car’s production versions. Some have argued that the likelihood of Tesla having something
There still are some Cybercab units out there with a steering wheel and pedals, and as Tesla said, these cars are engineering or test vehicles, which have Safety Monitors on board to help the car out of a precarious situation or emergency.
Tesla released the Full Self-Driving v14 ‘Lite’ suite to owners of Hardware 3 or AI3 vehicles today, adding several new features to the vehicles that were once believed to be capable of unsupervised self-driving.
Now, Tesla has released this modified suite to older Tesla vehicles, adding plenty of new features and capabilities.
Here are the full release notes for the suite:
- Distilled the intelligence from HW4 V14 into HW3. This allows HW3 to directly learn how to handle scenarios using HW4 V14 as a guide. This process unlocks the improvements that have been made to HW4 including Reinforcement Learning (RL) and offline models for HW3.
- Improved both proactive and reactive responsiveness across a wide variety of categories including navigation handling, merges and forks, pedestrian interactions, traffic lights, and vehicle cut-in scenarios.
- Improved general comfort in nominal scenarios through fewer false slowdowns, smoother steering and more consistent lane centering.
- Introduced parking, unparking, and reversing capabilities.
- Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, or at the Curbside.
- Speed Profiles are now available at all times, to further customize driving style preference.
These improvements, according to Tesla’s Head of AI, Ashok Elluswamy, help distill the driving behavior from AI4’s v14 series into both the camera and compute configurations of AI3.
Tesla Full Self-Driving v14 ‘Lite’ for older cars finally gets released
He added:
“It includes destination options and speed profiles on city roads, but more importantly significantly improved safety. We hope you’ll enjoy it, once the build ships wide.”
FSD v14 Lite is now rolling out to AI3 early-access customers. Based on the feedback, will rollout to more customers over the next few weeks.
This build distills the driving behavior from AI4’s v14 series into both the camera and compute config of AI3. It includes destination…
— Ashok Elluswamy (@aelluswamy) June 29, 2026
Tesla will continue to roll out the v14 Lite suite more widely in the coming weeks, the company said.
Tesla Phone? Not quite, but close: analyst
Tesla reveals huge Cybercab detail in new guide for First Responders
