Tesla Cuts UK Leasing Prices Amid 60% Drop in July Sales

Tesla Leasing Prices Drop: Tesla leasing prices in the UK have decreased significantly, with the Model 3 now available for £252 per month, down from £600–£700 last year, and the Model Y dropping to between £377 and £400.

Sales Decline: Tesla's sales in the UK plummeted by 60% year-on-year, with only 987 new cars registered in July 2025 compared to 2,462 units the previous year, reflecting both brand-specific issues and a broader market decline.

Increased Competition: The company faces growing competition from budget-friendly electric vehicle manufacturers like BYD, which has seen significant sales growth, offering alternatives that appeal to cost-conscious consumers.

Inventory Challenges: Tesla is struggling with excess inventory, leading to price cuts as dealers and leasing firms attempt to manage stock levels, raising concerns about the potential impact on Tesla's premium brand image.