Tesla’s recent strategy of withholding leased cars for a future robotaxi fleet has taken an unexpected turn, as reported by Reuters. Initially, Tesla customers were prohibited from purchasing their leased Model 3 sedans at the end of the lease term, with the company citing the need to reserve the vehicles for the upcoming robotaxi network.
This policy was later extended to all Tesla models by 2022, but in a surprising reversal in November, Tesla began selling the previously leased vehicles instead, as the promised robotaxi fleet failed to materialize. CEO Elon Musk explained the decision, stating, “You don’t have the option of buying. We want them back. Next year, for sure we’ll have over one million robotaxis on the road.”
Tesla capitalized on this change by updating the features of the leased vehicles through software upgrades before selling them to new buyers. This allowed the company to sell the cars at a higher price, with one source describing it as a way to “jack up the price” of used cars.
Despite the initial no-buy policy being justified by the need for a supply of vehicles for the robotaxi network, Tesla’s actions seemed to contradict its public statements about the future use of the leased vehicles. Nonetheless, the strategy remained legal and contributed to Tesla’s meteoric rise in stock value, making it the world’s most valuable automaker with a 1,500% increase in stock since 2019.
In 2019, Tesla had mentioned on its website that customers who choose leasing over owning would not have the option to purchase their car at the end of the lease, as the company planned to use those vehicles in the Tesla ride-hailing network once full autonomy was achieved through over-the-air software updates.
Despite these controversies, Tesla faced a 20% drop in revenues in Q1 2025, falling to $13.97 billion from $17.38 billion the previous year. This decline was attributed to factory upgrades for the production of the new Model Y SUV.
Overall, Tesla’s unconventional approach to leasing and selling previously leased vehicles has raised questions about the company’s future plans and the impact on its financial performance. Only time will tell how this strategy will play out in the long term.
