Tesla has extended its highly sought-after 1.99% APR financing promotion for the new Model Y All-Wheel Drive (AWD) in the U.S., pushing the deadline from June 16 to June 30, 2025. This move offers electric vehicle (EV) enthusiasts and potential buyers a rare opportunity to secure affordable financing on one of the market’s leading electric SUVs. The promotion highlights a strategic effort to boost sales amid growing competition in the EV sector.

Extended Financing Boosts Accessibility for EV Buyers

The extended promotion applies to well-qualified buyers with excellent credit who order a new Model Y LR AWD and take delivery by June 30, 2025. Financing requires a minimum down payment of $7,500, plus applicable taxes and fees.

A standout feature is the option to apply a $7,500 federal tax credit toward the down payment if eligible, a benefit that could significantly lower upfront costs. Tesla’s website details financing options, showing a 72-month term with a $3,999 down payment, resulting in monthly payments of $507 after estimated savings.

Tesla Extends 1.99% Apr Financing Deal For Model Y Awd Through June 30

This low 1.99% APR, or a $0 due-at-signing alternative, reflects Tesla’s commitment to making EVs more accessible. For comparison, the average auto loan rate for new cars in 2025 hovers around 5-6%, making this deal a compelling choice for buyers looking to save on interest over time. The inclusion of a $500 New York EV incentive further sweetens the offer for residents in that state, aligning with broader trends of state-level support for clean energy adoption.

Technical Highlights and Industry Trends

The Model Y AWD combines performance with efficiency, featuring dual electric motors that deliver robust acceleration and a range of approximately 330 miles per charge, according to Tesla’s specifications. Its sleek design, showcased against a mountainous backdrop in promotional images, appeals to both urban commuters and outdoor enthusiasts. The vehicle’s build quality and over-the-air update capability continue to set it apart, reinforcing Tesla’s leadership in EV technology.

This financing extension comes as the EV market faces increased competition from brands like Ford and Rivian, which are expanding their electric SUV lineups. Tesla’s decision to prolong the offer suggests a response to softening demand or an effort to clear inventory ahead of new model releases.

Industry analysts note that such promotions can stimulate sales by reducing the total cost of ownership, a key factor for buyers weighing EVs against gas-powered alternatives. The $507 monthly payment, for instance, undercuts the estimated $610 per month in gas savings for traditional vehicles, per Tesla’s calculations.

Implications for EV Owners and the Industry

For EV owners, this deal lowers the financial barrier to upgrading to a newer, more efficient model, potentially accelerating the transition from fossil fuels. The extended timeline provides a two-week window for buyers to finalize purchases, a critical factor given supply chain delays that have plagued the industry. Tesla’s strategy could also influence competitors to offer similar incentives, shaping future pricing trends.

Regulatory support, such as the federal tax credit, underscores the U.S. government’s push toward electrification, with Tesla leveraging these benefits to attract buyers. However, eligibility requires careful review of income and vehicle criteria, details of which are available on Tesla’s site. For now, this promotion positions the Model Y as a top choice for those seeking a blend of performance, savings, and sustainability in the evolving EV landscape.