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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.
- France’s Design Studio contains language that indicates the vehicle can be purchased outright at the conclusion of a leasing period.
- 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.
- Tesla does not give the option to buy the vehicle outright at the end of the lease in Germany.
- 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.
- Tesla Poland has no explicit language stating that the car must be returned to Tesla.
- 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.
News
Elon Musk drops a bomb regarding Tesla Model S, X inventory
After more than a decade on the road, the original flagship sedan and SUV platforms are effectively at the end of the line. Production of new Model S and Model X vehicles has ceased, and custom orders were quietly halted in early April. What remains are roughly a few hundred factory inventory units scattered across the globe, mostly Plaid variants, and they are disappearing fast.
Elon Musk just dropped a bomb regarding Tesla Model S and X inventory, and as the company is phasing out the flagship vehicles, it sounds like the time to purchase one brand new is almost over.
Musk confirmed on Wednesday that there are “only a few hundred Tesla Model S & X cars left in inventory. Order now if you want one.”
Tesla is running out of units rather quickly.
The message from Musk reads like a final call for two of the company’s most storied vehicles.
Only a few hundred Tesla Model S & X cars left in inventory. Order now if you want one.
— Elon Musk (@elonmusk) April 8, 2026
After more than a decade on the road, the original flagship sedan and SUV platforms are effectively at the end of the line. Production of new Model S and Model X vehicles has ceased, and custom orders were quietly halted in early April. What remains are roughly a few hundred factory inventory units scattered across the globe, mostly Plaid variants, and they are disappearing fast.
The news marks the close of a remarkable 14-year chapter. Launched in 2012, the Model S redefined the electric vehicle with blistering acceleration, over-the-air updates, and a luxury interior that embarrassed traditional sedans.
The Model X followed in 2015, turning heads with its Falcon-wing doors and seating for seven.
Together, the Model S and Model X proved EVs could be desirable halo cars, not just eco-friendly commuters. Their departure clears factory space at Tesla’s Fremont plant for something the mass production of the Optimus humanoid robot, which Musk believes will be the greatest contributor to the company’s value.
Musk has repeatedly signaled that Tesla’s future lies beyond passenger cars. Resources once devoted to low-volume flagships are shifting toward autonomy, Robotaxis, and AI hardware. Optimus, the company’s general-purpose robot, is expected to handle manufacturing, household chores, and eventually complex labor.
In the short term, the scarcity has already driven prices on remaining inventory up by about $15,000, turning the last Model S and X into instant collector’s items.
Tesla uses Model S and X ‘sentimental’ value to enforce massive pricing move
The announcement underscores Tesla’s relentless pivot. While the Model Y continues to hold strong sales, the legacy S and X represented an earlier era of pure performance luxury.
The future has been paved by Tesla and Musk’s focus on autonomy, at least in the United States. Customers continue to call for a large SUV, which might be on the way after a recent nudge from Musk on X.
However, whatever the future holds, it has been forged by Tesla’s two flagship vehicles.
Once these final cars are gone, the Model S and Model X will live on only in driveways, forums, and the rear-view mirror of automotive history.
News
Tesla Cybercab production ignites with 60 units spotted at Giga Texas
Designed exclusively for unsupervised Full Self-Driving, the Cybercab promises to deliver safe, affordable, on-demand mobility without human drivers. Early units with temporary controls allow engineers to refine hardware and software in controlled settings before full autonomous fleets hit the roads.
Tesla Cybercab production at Giga Texas seems to have ignited, as 60 units were spotted outside of the production facility on Wednesday, with speculation hinting the all-electric ride-hailing vehicle could be headed to the lineup sooner rather than later.
Interestingly, they were also spotted with steering wheels, which Tesla said the car would be void of.
Giga Texas observer and drone operator Joe Tegtmeyer shared on X a new post that revealed approximately 60 Cybercabs parked in two organized groups in the factory’s outbound lot—the largest concentration observed to date.
Happy 8 April (Wednesday) at Giga Texas, especially for those wanting an update on Cybercabs … I saw about 60 of them in two groups in the outbound lot today … the largest grouping yet!
Also, looks like at least some of these have white seats and most still have clearly… pic.twitter.com/mZbKH96bA7
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) April 8, 2026
Tegtmeyer noted white seats inside several vehicles and clearly visible steering wheels on most. These are not yet the final steering-wheel-free production versions unveiled in 2024, but early units are likely undergoing validation testing for new features and real-world robotaxi operations across the country.
The timing could not be more symbolic. Tesla has consistently affirmed that mass manufacturing of the Cybercab would begin this month.
CEO Elon Musk has reiterated the April 2026 target multiple times, emphasizing that while initial output will be slow, following the classic S-curve of new-vehicle ramps, the Giga Texas line is being prepared to produce hundreds of units per week.
Tesla CEO Elon Musk outlines expectations for Cybercab production
The first Cybercab already rolled off the line in February, but April marks the official shift to volume production of this purpose-built, pedal- and steering-wheel-free autonomous vehicle.
These 60 Cybercabs signal far more than parked prototypes. They represent tangible proof that Tesla is executing on its ambitious robotaxi roadmap.
Designed exclusively for unsupervised Full Self-Driving, the Cybercab promises to deliver safe, affordable, on-demand mobility without human drivers. Early units with temporary controls allow engineers to refine hardware and software in controlled settings before full autonomous fleets hit the roads.
As production scales, Giga Texas, already home to Cybertruck production, will become the epicenter of Tesla’s autonomous revolution, targeting millions of vehicles annually in the years ahead.
For Tesla and its investors, this sighting underscores manufacturing excellence and timeline discipline. It counters skepticism about the company’s ability to deliver on next-generation vehicles amid a competitive autonomous landscape.
Broader implications are profound: lower transportation costs, reduced emissions, and safer roads as robotaxis proliferate. Musk’s vision of a future where Cybercabs operate 24/7, generating revenue for owners and riders alike, is now visibly underway.
With mass production officially ramping in April, today’s images are not just a snapshot of parked vehicles; they are the first frames of a mobility transformation. Tesla is not only meeting its commitments; it is accelerating toward an era where autonomy reshapes daily life. The Cybercab era has begun.
News
Tesla makes major rebound in European market with 4x in registrations
Tesla delivered a striking performance in Germany’s automotive market in March 2026, with new vehicle registrations more than quadrupling year-over-year, according to official data from the German Federal Motor Transport Authority (KBA).
Tesla headlines will have you believe the company is dead to rights in Germany, selling nearly no cars, and stating consumers are more interested in other brands not run by CEO Elon Musk.
However, the latest data from Germany proves this might be a dying narrative.
Tesla delivered a striking performance in Germany’s automotive market in March 2026, with new vehicle registrations more than quadrupling year-over-year, according to official data from the German Federal Motor Transport Authority (KBA).
Newly registered Tesla vehicles jumped 315.1 percent to 9,252 units, marking the company’s strongest March on record in the country and signaling a sharp rebound after earlier challenges in the European market.
A big 4x from Tesla in Germany in March in vehicle registrations
Don’t let anyone tell you Tesla is dead in Europe https://t.co/24hyus1xTF pic.twitter.com/205yPwncRv
— TESLARATI (@Teslarati) April 7, 2026
The March surge accounted for roughly 72 percent of Tesla’s first-quarter total in Germany. Q1 registrations reached 12,829 vehicles, a 160 percent increase from the same period a year earlier. For context, the implied March 2025 figure was approximately 2,229 units—one of the brand’s weaker months in recent years.
These numbers underscore Tesla’s ability to capitalize on renewed demand in Europe’s largest car market, where the company had faced softening sales throughout much of 2025 amid heightened competition and broader economic pressures.
Germany’s overall new passenger car market also expanded in March, with 294,161 registrations—a 16 percent rise from the prior year. Battery-electric vehicles (BEVs) performed even more robustly, climbing 66.2 percent to 70,663 units and representing about 24 percent of all new car registrations.
Tesla’s 9,252 deliveries captured approximately 13.1 percent of the BEV segment for the month and roughly 3.1 percent of the total new car market, highlighting its continued leadership among pure-play electric brands despite growing competition from both domestic German manufacturers and Chinese entrants like BYD, which saw its own registrations surge 327.1 percent to 3,438 units.
The strong showing comes as Germany’s EV incentives and infrastructure investments continue to support adoption. Tesla’s lineup, anchored by the Model Y and Model 3, appears to have resonated with buyers seeking premium electric options.
Industry observers note that the concentrated March registrations, accounting for the bulk of the quarter, may reflect strategic inventory management, competitive pricing adjustments, or pent-up demand following a slower start to 2026.
This performance provides a much-needed bright spot for Tesla in Europe, where the brand had seen market share erosion in prior periods.
Tesla Model Y outsells all EV rivals in Europe in 2025 despite headwinds
With Q1 2026 registrations up significantly, Tesla has demonstrated resilience in a market that registered 699,404 new passenger cars for the quarter, up 5.2 percent overall. As the year progresses, sustained momentum in Germany could bolster Tesla’s European outlook, particularly if broader BEV growth persists amid evolving policy support and technological advancements.
The March 2026 data from the KBA paints a picture of Tesla’s renewed strength in Germany: a fourfold monthly leap, record quarterly gains, and a solid foothold in an expanding EV segment.
Whether this marks the beginning of a sustained recovery or a seasonal peak remains to be seen, but the numbers affirm Tesla’s enduring appeal in one of the world’s most competitive automotive landscapes.





