Tesla lease prices ‘slashed by 40%’
Tesla has reportedly almost halved lease prices of its Model 3 and Model Y EVs amid falling sales.
According to the Times and Reuters, the US electric car giant is offering discounts of up to 40% through its preferred leasing partners, meaning drivers can secure a Model 3 for as little as £300 per month.
The Times reports that stuttering registrations amid competition from China and condemnation of Tesla CEO Elon Musk have prompted the action. It also cites industry sources who claim Tesla faces a lack of storage space for models arriving from its overseas factories.
Tesla lease customers can currently secure a Model 3 RWD standard range, with a list price of just under £40,000, for £300 a month including VAT via Silverstone Leasing. According to the Times, a similar deal a year ago would have cost between £600 and £700.
There are also strong deals on the recently updated Model Y. Silverstone Leasing is currently offering the standard range RWD variant for as little as £463 per month including VAT, with prices on other leasing sites reportedly as low as £450 last week.
While offering significant cuts on lease prices, Tesla has not changed the cash price of either model. The Model 3 still starts at £39,990 while the new Model Y is priced from £44,990 rather than the £60,000 quoted by the Times. Industry experts say adjusting Tesla lease deals is a cheaper means to stimulate interest than cutting the list price for cash buyers.
So far in 2025, Tesla has registered 23,708 cars – a 7% decline on the first half of 2024. At the same time BYD – seen by many as Tesla’s key rival – saw registrations jump 514%. While BYD does sell the hybrid Seal-U in the UK, most of its cars are all-electric. Polestar, another pure EV rival to Tesla has also seen its registrations grow 150% in the year to date, according to data from the Society of Motor Manufacturers and Traders.
Across Europe, the picture is bleaker for Tesla. Sales were down 33% in the first half of 2025 to 110,000, compared with 165,000 in the first half of 2024. Its market share has dropped from 2.4% in the first half of 2024 to 1.6% in 2025, according to the European Automobile Manufacturers’ Association (ACEA).
EV Powered has approached Tesla for comment.
