Tesla Flips the Script: Lease Buyout Policy Reversal Sparks Controversy

Tesla has reversed a policy imposed in 2019 that prevented U.S. leasing customers from purchasing their cars at the end of the lease. The initial plan was to use returned cars for a 'robotaxi' network, which failed to materialize. Amid dwindling used Tesla demand, the automaker hopes the policy change could revamp interest.

The company's reliance on software upgrades for selling off-lease vehicles had stirred controversy as it led to inflated resale values. The option to buy now aims to stimulate a market plagued by a declining interest in used Tesla cars, partly fueled by CEO Elon Musk's polarizing political engagements.

Adding to the complexity is the broader challenge faced by Tesla's vehicle depreciation, with used Tesla prices falling markedly compared to other brands. Affected consumers are airing frustrations amid the shifting policies and political chaos surrounding Tesla and its CEO, reflecting broader apprehensions in the auto market.

(With inputs from agencies.)