Tesla's Shrinking Margins: Should You Still Lease One?
Tesla's profits are being squeezed by AI and FSD spending. Here's what that corporate turbulence actually means if you're eyeing a Tesla on a novated lease.
Tesla just posted over $US100 billion in annual revenue — and somehow that's the boring part of the story. According to The Driven, margins are being crunched by aggressive spending on AI, Full Self-Driving, and robotics — and Elon Musk hasn't ruled out a merger with SpaceX.
For most people, that reads as corporate drama. For someone considering a Tesla on a novated lease, it raises a few practical questions worth answering plainly.
What this means for novated lease customers
Residual values are the real risk to watch. When a manufacturer is burning capital on moonshots and executive decisions create headline noise, resale markets can get jittery. A novated lease has a residual value baked in at signing — that number is fixed regardless of what Tesla's share price or corporate structure does during your lease term. So the structural lease protection is real.
On the tax side, nothing has changed. Eligible battery electric vehicles — including Tesla models that sit under the relevant luxury car threshold — still benefit from the FBT exemption introduced under the Treasury Laws Amendment (Electric Car Discount) Act 2022. That policy is tied to the vehicle's powertrain classification, not to Tesla's balance sheet or Elon Musk's business decisions.
What is worth monitoring is whether ongoing margin pressure causes Tesla to reprice vehicles mid-cycle, alter software subscription costs, or — in an extreme corporate restructuring scenario — affect parts and service availability in Australia. None of these are imminent concerns, but they're the right questions to ask before committing to a three-to-five year lease term.
Common questions
Does Tesla's financial performance affect my novated lease contract?
No. Your lease is a contract with your employer and the finance provider, not with Tesla directly. The residual value, repayments, and FBT treatment are locked in at the time of signing.
Could a Tesla–SpaceX merger affect the FBT exemption on my vehicle?
No. FBT exemption eligibility is determined by Australian tax law based on vehicle type and price threshold — it has nothing to do with the manufacturer's corporate structure or ownership.
Is a Tesla still a smart novated lease choice given all this uncertainty?
That depends on your individual situation, lease term, and risk tolerance. The tax benefits for eligible EVs remain in place, but it's worth discussing residual value assumptions and service considerations with a licensed broker before committing.
What happens to my lease if Tesla's resale values drop significantly?
With a novated lease, the residual value is agreed upfront. If the vehicle's market value at end of term is below that residual, you may face a shortfall — this is a standard lease risk regardless of brand, and worth factoring into your decision.
Are there other EV brands worth considering for a novated lease?
Yes. The FBT exemption applies to any eligible BEV or PHEV under the threshold, not just Tesla. A good broker will show you options across multiple makes so you're not anchored to one brand's corporate fortunes.