Tesla’s slashing lease prices in the UK by nearly half as the electric car maker struggles with falling sales. British shoppers can now lease a Tesla for just over half of last year’s monthly rates. The company has cut costs across several vehicles in its lineup for 2025, marking its most aggressive pricing strategy yet.
The steep discounts come as Tesla faces mounting pressure in the UK market. New Tesla registrations dropped 60% year-over-year to just 987 units in July. That’s much worse than the overall UK car market, which fell only 5% during the same period. The company’s also offering 24-month lease options to attract customers who don’t want long-term commitments.
Tesla isn’t just cutting prices for regular buyers. The company’s giving car leasing companies discounts of up to 40%. These fleet discounts help Tesla clear excess inventory as storage space runs short in the UK. Leasing firms say they’ve never seen discount levels this high from the manufacturer.
Tesla’s offering unprecedented 40% discounts to leasing companies as UK inventory piles up and storage space runs short.
The price cuts reflect broader challenges for Tesla. Battery electric vehicles are expected to reach 23.8% of new UK registrations in 2025, but Tesla faces growing competition from both established carmakers and new rivals. The electric SUV market has become especially crowded. These aggressive lease deals help customers avoid the steep depreciation losses that come with buying electric vehicles outright, which can reach up to 60% in just two years.
Tesla’s trying other strategies too. The company reduced its Model Y Long Range price by £2,000. There’s also a leaked budget variant codenamed “E41” that’s aimed at mainstream buyers. The E41 could start under £40,000 by removing premium features like the glass roof and ambient lighting while keeping core technologies. These moves show Tesla’s choosing market share over profit margins.
New regulations will affect electric car buyers starting April 1st, 2025. EV leases will pay £10 road tax in the first year, rising to £195 in the second year. Businesses can still get a 100% First Year Allowance for switching to electric. The ULEZ Scrappage Scheme offers up to £2,000 for trading in eligible cars.
Tesla’s supply chain faces risks too. The company sources 15-25% of parts from Mexico and an undisclosed amount from Canada. Future tariffs could push vehicle prices higher globally. These pricing pressures make Tesla’s current UK strategy even more important for maintaining its market position.