Tesla FSD v14 Is Here — Does It Change the EV Lease Equation?
Tesla's FSD Supervised v14 is turning heads. Here's what the update means if you're considering a Tesla on a novated lease in Australia. Plain-English breakdown.
Tesla has rolled out FSD (Supervised) v14, and early reviews are calling it a meaningful step forward — smoother highway behaviour, smarter low-speed crawling, and genuinely improved auto-parking. The Driven's first-drive review describes it as being able to "drive like a sloth and park like a boss" — which, if you've ever watched earlier FSD versions lurch through a car park, is actually a big deal.
The caveat in that same review is worth repeating: FSD is still supervised, meaning the driver must stay alert and in control at all times. This isn't autonomous driving. It's an advanced driver-assistance system that keeps getting better — but it's not a reason to stop paying attention.
What this means for novated lease customers
If you're weighing up a Tesla Model 3 or Model Y on a novated lease, FSD v14 is a genuine value-add to keep in mind — but it shouldn't be the lead reason you sign a contract.
What is a strong reason: under current Australian tax rules, eligible battery electric vehicles under the luxury car tax threshold remain exempt from fringe benefits tax (FBT) when packaged through a novated lease. That means a Tesla on a novated lease can be funded with pre-tax salary, reducing your taxable income. The tech upgrades are a bonus on top of that structural tax advantage.
Over-the-air software updates like FSD v14 also mean the car you drive at the end of a three or four-year lease term is materially better than the one you picked up on day one — something traditional petrol vehicles simply don't offer. That has implications for residual value and the overall cost of your lease, though exact figures will depend on your individual circumstances and should be modelled with a qualified broker.
Common questions
Does Tesla FSD affect the FBT exemption for novated leases?
No. The FBT exemption for eligible EVs is based on vehicle type and purchase price, not software features. FSD is an optional add-on and does not affect your tax treatment under the scheme.
Can I include the cost of FSD in my novated lease?
In many cases, yes — FSD purchased as part of the vehicle order can be rolled into the lease finance. Speak to your novated lease broker about how it's treated in your specific quote, as this can affect your monthly pre-tax and post-tax contributions.
Is FSD (Supervised) v14 available in Australia?
Tesla has been gradually rolling out FSD Supervised to Australian vehicles. Check your Tesla app for availability on your specific vehicle configuration, as rollouts can differ by region and hardware version.
Which Tesla models are eligible for the EV FBT exemption?
Eligible models are those that fall below the relevant luxury car tax threshold for fuel-efficient vehicles. Tesla Model 3 and Model Y variants have historically qualified, but pricing changes can affect eligibility — always confirm the current threshold and vehicle price before signing.
Do over-the-air updates like FSD v14 affect novated lease residual values?
Potentially yes, in a positive direction — software improvements can support resale demand. However, residual values in a novated lease are set by the finance provider at the start of the contract and are not automatically adjusted based on software updates.