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Tesla finally offers lease-to-buy options for Model 3 and Y, but it’s not available everywhere

(Credit: Evan Jarecki/Instagram)

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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.”

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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.

 

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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.

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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.

Other Design Studio examples show that the vehicle must be returned to Tesla at the end of the leasing period.

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.

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.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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SpaceX wants to catch Starship for launch 14, Elon Musk says

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Credit: SpaceX

Just hours after Starship Flight 13 achieved a successful soft splashdown of its upper stage in the Indian Ocean on July 24, Elon Musk announced an ambitious next step for the company’s next launch of the rocket.

“Unless we discover problems after mission data review, SpaceX will attempt to catch the ship with the tower on [the] next flight,” the SpaceX CEO posted on X on Friday.

That “next flight” is expected to be Flight 14. The plan involves returning the Starship upper stage, commonly called the “ship,” to the Starbase launch tower in Texas and catching it mid-air using the same mechanical “chopsticks” arms that have already proven themselves with the Super Heavy booster.

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A successful catch would mark the first time an orbital-class upper stage has been recovered this way, advancing SpaceX’s goal of full and rapid reusability for the entire vehicle.

SpaceX has already demonstrated the tower-catch technique multiple times with Super Heavy. The first successful catch came on Flight 5 in October 2024, when Booster 12 was plucked from the sky by the Mechazilla arms. Subsequent flights, including those involving Boosters 14 and 15, repeated the feat. Several of those recovered boosters were later inspected, refurbished, and flown again, proving the system’s viability for quick turnaround.

Traditional reusable rockets, such as SpaceX’s own Falcon 9 or Blue Origin’s New Shepard, land on legs either on land or droneships. Rocket Lab has recovered its small Electron first stages by helicopter, but those are far lighter vehicles.

SpaceX Starship just nailed something it’s never done before

The China Academy of Launch Vehicle Technology (CALT), a subsidiary of the China Aerospace Science and Technology Corp. (CASC), completed a catch of its booster on July 10. They are the only entity besides SpaceX to attempt and complete the feat.

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Flight 13 provided encouraging data. The ship executed a controlled reentry, flipped, and soft-landed intact in the ocean after deploying Starlink satellites, offering the first clear post-splashdown views of an undamaged heat shield. The Super Heavy booster, meanwhile, experienced a harder splashdown in the Gulf of Mexico.

Musk has previously stressed that ship catches would only follow multiple successful soft ocean landings to minimize risk of debris over land.

If Flight 14 succeeds, SpaceX would take a major stride toward routine, rapid reuse of both stages—critical for lowering launch costs and supporting ambitious plans for lunar and Mars missions. For now, teams are reviewing the Flight 13 data. Should everything check out, the next Starship flight could deliver one of the most spectacular recoveries in aerospace history.

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Tesla to open source Model S and Model X designs and software

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Credit: Tesla

In a move echoing its earlier commitment to open innovation, Tesla CEO Elon Musk announced recently that the company plans to make the design and software of its Model S and Model X fully open source.

This follows the same approach Tesla took with its original Roadster, releasing all available design, engineering, and diagnostic materials in November 2023 so that “whatever we have, you now have.”

The Model S, introduced in 2012, was Tesla’s first mass-produced vehicle and a groundbreaking luxury electric sedan. It offered impressive range, rapid acceleration, and over-the-air software updates that redefined expectations for electric cars.

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The Model X, launched in 2015, built on that foundation as a high-performance electric SUV notable for its distinctive falcon-wing doors, spacious interior, and advanced safety features. Both models served as flagships that helped establish Tesla as a leader in the EV industry and popularized long-range battery-electric vehicles.

Production of the Model S and Model X was wound down earlier in 2026, with manufacturing ending in the second quarter. Tesla redirected the Fremont factory space previously used for these vehicles toward higher-priority projects, including Optimus humanoid robots and the Cybercab autonomous vehicle.

By the time of Musk’s open-source announcement, custom orders had closed and only remaining inventory was available.

Open-sourcing the designs and software offers several clear advantages. Owners of these aging but still capable vehicles gain better access to technical documentation, diagnostic tools, and software resources, making independent repairs and modifications easier and more affordable.

Independent repair shops and third-party specialists can support the large existing fleet without relying solely on Tesla’s service network. Enthusiasts and engineers can study real-world implementations of Tesla’s battery, powertrain, and software systems, potentially accelerating broader industry progress in electric mobility.

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The step aligns with Tesla’s 2014 patent pledge and its overall mission to advance sustainable transport by sharing hard-won knowledge rather than locking it behind proprietary walls.

By releasing these materials now that the models have left production, Tesla ensures continued support for its early adopters while freeing internal resources for future technologies. The open-source release of the original Roadster already enabled simulations, community projects, and deeper technical understanding.

Extending that practice to the Model S and Model X should deliver similar benefits on a larger scale, helping keep these influential vehicles relevant and repairable for years to come

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Tesla flexes incredible Robotaxi metric that skeptics will hate

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Credit: Tesla

Tesla flexed one incredible Robotaxi metric during the Q2 Earnings Call that skeptics have to hate to hear. The company’s platform has already driven more than 380,000 miles of unsupervised ride-hailing across several states with no notable incidents.

During the company’s Q2 Earnings Call on Wednesday, Vice President of AI, Ashok Elluswamy, said:

“First of all, I’d like to state that the Robotaxi program has been operating extremely well. Especially in terms of safety, the program has had an impeccable safety record. We have driven more than 380,000 miles of unsupervised Robotaxi, now across six cities in two different states. We have had zero notable incidents. Any reports have been of other actors impacting us when we were stationary. I like to emphasize how safe the operation has been so far. Zero notable incidents over 380,000 miles.”

Elluswamy’s claim over Robotaxi miles is a significant milestone for Tesla in the grand scheme, especially considering this is a sizeable number of miles without any incident.

Tesla’s self-driving approach is much different than that of other companies. Tesla has maintained that vision is the only thing needed to have a solid and effective self-driving suite. Many self-driving companies utilize things like LiDAR, sensors, and other elements to improve performance, but Elluswamy sent a jab at those who believe it’s needed.

“Historically, the so-called experts have always claimed that you need LiDARs, radars, HD maps, and the entire kitchen sink to drive safely. Here we show that such is not true. You can have safe, comfortable, and affordable autonomy with just cameras. This record should be a huge validation of Tesla’s entire AI approach.”

The feat of accumulating this many miles without any driver behind the wheel is impressive. The thing is, Tesla is also doing this across several different locations, with varying traffic rules, pedestrian levels, weather patterns, and other important factors.

While Tesla is not ready to roll out an unsupervised platform completely, it is a slow but steady indication that the company is well on its way to figuring things out.

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The company’s attitude toward expansion is slow, safe, and controlled, and despite this huge milestone, it will still be some time until we see Tesla truly unleash unsupervised rides more aggressively.

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