Tesla Slashes UK Prices of Model 3 and Model Y
In an unexpected move, Tesla has slashed up to £9,100 off the cost of its two most popular models.
The base spec Model 3 sees a reduction of £8,100 whilst the Model Y Performance is now £9,100 cheaper to buy. This means the Model 3 now starts from £42,990 whilst the cheapest Model Y is £44,990.
The base spec Model Y now starts from £44,990.
These price cuts follow what was a bumper year for both models of Tesla, finishing in the top 2 spots in terms of BEV sales in the UK last year with the Model Y amazing a total of 35,551 new registrations and the Model 3 racking up an impressive 19,071 new registrations. For context, number 3 in that list (the Kia e-Niro) accounted for 11,197 registrations according to data from the SMMT.
Those who purchased a new Model Y or Model 3 in the month of December ‘22, which was coincidentally a very strong month for the brand, are likely to be seething at this news, especially as Tesla has made it clear that there will be no redress; however, those still waiting to bite the bullet will undoubtedly be ecstatic to find their Tesla dropping in price by 15-20% overnight.
In a statement, Tesla said : ‘Our focus on continuous product improvement through original engineering and manufacturing processes have further optimised our ability to make the best product for an industry-leading cost. As we exit what has been a turbulent year of supply chain disruptions, we have observed a normalisation of some of the cost inflation, giving us the confidence to pass these through to our customers.’
With the share price plummeting in recent times, and with some of the supply-chain issues now finally starting to ease, Tesla shareholders will certainly hope this helps the carmaker to forge a recovery in what have been turbulent financial times. This may also be a preemptive strike against the affordable options coming from China this year (BYD, GWM, MG etc).
This controversial and surprising move also fires a shot across the bows of many, more established, UK Tesla rivals and it’ll be interesting to see how the wider market reacts with its own pricing.
The wider effect of these price cuts may help to make EV cars much more affordable to people who may have been previously priced out of owning a BEV.
Used Tesla prices are also likely to see the effect of this price in the coming weeks and months; used Model 3 prices reduced significantly toward the back end of 2022 so could this finally be the year of the “affordable” Model 3? or even the “affordable” EV?
Interesting times folks…
Check out my video on the Tesla Price Cuts