British drivers can now lease a Tesla electric vehicle for just over half of what they paid last year, as the automaker grapples with storage shortages and declining sales.
Industry sources say Tesla has offered discounts of up to 40% to leasing companies to move unsold vehicles into customers' hands.
According to Benzinga, the steep reductions mean a Tesla Model 3 could now cost as little as £252 ($341) per month, down from the previous £600–£700 ($813–$948), although retail sticker prices remain unchanged.
Tesla is also offering zero-interest financing to help accelerate vehicle deliveries without cutting official prices.
"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, an automotive expert cited in the report.
📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $TSLA Tesla slashes UK monthly payments as sales slump - The Times
— Hardik Shah (@AIStockSavvy) August 18, 2025
Tesla Inc is offering discounts of up to 40% to car leasing firms in the UK to shore up sliding sales
The discounts– which are passed on to customers through cheaper monthly payment plans– are… pic.twitter.com/Mqkp6uR8yw
Tesla Struggles in Europe, Norway Sales Rise 24%
The move comes as Tesla struggles in the UK market. July sales fell about 60% to 987 units, according to the Society of Motor Manufacturers and Traders (SMMT), while overall new car registrations in Britain dropped roughly 5% year-on-year.
Battery electric vehicles are projected to account for 23.8% of new registrations in 2025, slightly higher than SMMT's previous forecast of 23.5%, Reuters said.
Tesla's storage issues have been compounded by competition from Chinese automakers and a global slowdown in demand.
By offering steep discounts to leasing companies, the company aims to clear its UK lots and make room for new deliveries.
The sales decline is not limited to the UK. Markets such as France, Denmark, and Sweden also reported double-digit drops, with Sweden seeing sales plunge by over 88%.
Norway, however, defied the trend with Tesla deliveries rising 24%, providing a rare bright spot for the automaker in Europe.
Industry observers note that lowering monthly payments, rather than slashing retail prices, allows Tesla to move inventory quickly while maintaining brand perception.
Analysts suggest this strategy may help Tesla manage costs, reduce storage bottlenecks, and keep vehicles circulating in the market.
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