Tesla has significantly cut leasing costs for several of its top-selling models in the UK, slashing prices by nearly half following a sharp drop in summer sales. In response to a 60% year-on-year decline in July registrations, down to just 987 vehicles from 2,462 the previous year, the company is now offering discounts of up to 40% to car leasing firms in an effort to stimulate demand and clear inventory.
According to industry experts, Tesla’s recent leasing discounts aren’t just a reaction to declining market share. Limited storage capacity for unsold vehicles in the UK has also pushed the company to speed up distribution by lowering lease prices. Leasing firms such as Silverstone Leasing are now offering Tesla Model 3 contracts at just £252 per month for a 36-month term. Prices for the newer Model Y, which has a retail value of approximately £60,000, have also dropped.
While Model 3 leases previously ranged between £600 and £700 per month, they’re now available for as low as £252 plus VAT. Meanwhile, the Model Y has dipped below the £400 monthly threshold.
Although Tesla hasn’t officially reduced the purchase prices of its key models, the Model 3 and Model Y, it has introduced several incentives to drive sales, including offering zero-interest financing through its retail channels.
Tesla is rapidly losing momentum as competitors gain traction. Chinese carmaker BYD, for example, saw its UK sales surge fourfold during the same period, surpassing 3,000 deliveries. Even more concerning, this downward trend extends across Europe, where Tesla’s sales are declining despite the overall rise in electric vehicle adoption.
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