Between 2019 and 2024, Tesla implemented a policy preventing leasing customers from buying their vehicles, instead reclaiming these cars ostensibly for a robotaxi fleet that has yet to materialize.

Instead of deploying the robotaxis, Tesla upgraded and resold the reclaimed vehicles at higher prices, boosting profits amid misleading lease buyout denials to customers.

Tesla’s lease buyout ban began with the Model 3 in 2019, expanded to all models by 2022, and ended in November 2023 without any robotaxis launched, highlighting the failure of Elon Musk’s stated goal of having over one million robotaxis by 2020.

This strategy drew scrutiny as used Tesla values declined and the National Highway Traffic Safety Administration set a June 19 deadline for Tesla to report deployment plans for its upcoming paid robotaxi launch in Texas.