Tesla Inc. on Wednesday raised lease prices for its U.S. lineup after the federal electric-vehicle tax credit expired on Sept. 30, a change that dealers and customers say translates into material increases in monthly payments. Company notices and dealership updates indicated lease payments rose broadly across models; Tesla said the adjustments reflect "recent changes in federal incentives" and are intended to align pricing with current policy and market conditions.

The federal credit, which could amount to as much as $7,500 for eligible new electric cars, had in practical terms reduced monthly lease payments by roughly $200 when amortized over a typical three-year contract. With that subsidy no longer available, Tesla’s lease adjustments added what dealers described as roughly 10 percent to 20 percent to monthly payments — a difference of about $100 to $300 depending on model and terms. Analysts estimate the loss of the credit will have a similar effect for other brands that previously passed value through lower lease pricing.

"For many lease customers the tax credit wasn't an upfront rebate but a built-in affordability feature," said Mark Rivera, an auto finance analyst at LMC Automotive. "Its removal is immediate and visible in monthly numbers, and that will change consumer math at the point of sale."

The timing follows a surge in EV buying that had accelerated heading into September, when U.S. light-vehicle sales were projected to rise between 4.5 and 7.5 percent, fueled in part by last-minute incentives and strong EV interest. Hyundai and Kia, for instance, saw an EV-driven boost to September sales as some manufacturers ran promotions before the deadline. Still, the sudden withdrawal of a major federal incentive risks blunting momentum and shifting demand toward cheaper gasoline models or used EVs while secondary-market prices adjust.

Consumer groups and industry associations warned of a short-term shock. "This will make electric vehicles less affordable for middle-income households who rely on leasing to lower upfront costs," said Allison Jones, a consumer advocate with the Center for Sustainable Transportation. The Alliance for Automotive Innovation urged lawmakers to consider a legislative extension, arguing that incentives are a crucial policy tool to sustain electrification and help automakers plan investments.

Wall Street took note: Tesla shares dipped modestly in midday trading as analysts recalibrated near-term sales potential, though many research houses emphasize that longer-term trends — falling battery costs, expanding charging networks and tightening state emissions rules — continue to support EV adoption. Battery pack prices, for example, have fallen dramatically over the past decade, a structural force that should eventually offset incentive volatility.

Automakers may respond with dealer incentives, extended financing deals or targeted rebates, but those moves typically put pressure on margins. Lease residual values for EVs could also drop if buyers demand steeper concessions, further complicating the leasing business model that many manufacturers use to broaden uptake.

Congressional leaders have signaled competing priorities, and prospects for a quick policy fix remain uncertain. In the near term, consumers and dealers will be watching whether manufacturers absorb more of the cost or whether renewed legislative action restores a level of predictability to what has become one of the auto industry's most consequential public-policy experiments.