The Tesla Model Y Propulsion is no longer available for long-term rental

A new step in the upcoming renewal of the Tesla Model Y: its Propulsion version is no longer offered for Long-Term Rental (LTD).

Who can say, as of this January 2025, which Tesla Model Y you will receive if you place an order? The fog surrounding the launch of the heavily revised version of the American manufacturer’s superstar electric SUV makes Tesla’s current commercial strategy very unclear.

In fact, since the reduction of the Ecological Bonus 2025 in France, the price of the Propulsion version has increased by 2,000 euros, reaching €42,990, after bonus deduction. Tesla’s super bonus of €4,000 on stock units is no longer available, making buying a Model Y less attractive. Especially with the prospect of a forthcoming version change.

And it’s convenient because Tesla no longer seems willing to sell its entry-level version, the Propulsion. If you pay cash, you likely won’t receive it until May 2025 at best. With lease with option to buy (LOA), the cost over 36 months is now €4,500 higher than the Long Range Propulsion version, as Mobiwisy recently revealed. Again, the incentive to look elsewhere is strong: delivery in May (again), while the Long Range Autonomy version, with 600 km range and €100 lower monthly rent, is available immediately!

What about financing? Starting at €664/month over 60 months (5 years), compared to €572/month for the Long Range Propulsion, which benefits from an APR of 0.99%… versus 6.99% for the Propulsion. Everything is set up to discourage buying Propulsion. But there has been no announcement regarding the renewal date of this version either…

What does the disappearance of LTD mean?

Today, we observe the disappearance of the Model Y Propulsion for Long-Term Rental (LTD). What does this imply?

This decision by Tesla could be related to financial and strategic considerations, especially to limit the future cost of vehicle returns. The residual value of electric models is disastrous due to rapid technological advancements and the arrival of new competitors, leading to significant depreciation and impacting the profitability of LTD contracts.

Furthermore, reconditioning returned vehicles incurs additional costs, and a saturated used car market will make resale less advantageous for Tesla. By simplifying its offer and promoting direct purchase or other versions of the Model Y, Tesla aims to reduce its financial exposure while optimizing resource management. This strategy aligns with the company’s frequent adjustments to adapt to market conditions and maximize margins.

And finally, a central question remains: when will this darn new Tesla Model Y be unveiled… and then marketed?

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