Tesla has almost halved the cost of leasing its electric cars in Britain, in a bid to reverse sliding sales and shore up its market share against fast-growing Chinese competitors.
British motorists can now lease a Tesla for just over half what it cost a year ago, with monthly payments on a Model 3 starting as low as £252 plus VAT. The Model Y, launched in May and retailing for about £60,000, has also been offered at under £400 per month by some leasing firms. Last summer, the same cars typically cost £600–£700 per month to lease.
Industry sources say Tesla has been forced into ad hoc discounts of up to 40% to leasing companies — both to stay competitive and because of limited UK storage capacity for unsold stock. While retail prices remain unchanged, Tesla has added zero-interest finance deals in its stores, a move analysts say will cost the company around £6,000 over three years on a £40,000 car.
“The most expensive way to find a home for these cars is by cutting the retail price. The cheapest way is to cut the monthly payments,” said Fraser Brown, managing director at consultancy MotorVise.
Tesla’s registrations in the UK fell by 60% in July year-on-year, to just 987 units, pushing its market share down to 0.7%. In contrast, China’s BYD — a relatively new arrival in the European market — claimed 2.3% of all new UK registrations, according to Society of Motor Manufacturers and Traders (SMMT) data.
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