Tesla Inc (NASDAQ:TSLA) is offering substantial discounts of up to 40% to UK car leasing companies in an effort to boost slowing sales, The Times reported Monday. The electric vehicle giant, led by Elon Musk, has been struggling with a shrinking global market share.
According to The Times, which cited industry insiders, the price reductions—reflected in lower monthly payments for customers—are also motivated by limited storage capacity for Tesla vehicles.
Under the new scheme, a Tesla Model 3, the company’s best-selling model, can now be leased for as little as £252 per month plus VAT on a 36-month contract. By comparison, monthly payments for the same car were as high as £600–£700 just a year ago.
Although Tesla has not cut the sticker prices of its vehicles, it is promoting zero-interest financing deals for buyers. In the UK, such deals could cost Tesla roughly £6,000 over three years on a £40,000 car.
The aggressive discounts come as Tesla navigates a prolonged slowdown in global sales. Much of the decline has occurred in the UK and Europe, where the company faces growing competition from Chinese electric vehicle manufacturers.
European sales have also been hit by public backlash against Musk’s political associations, particularly his links to the alt-right, with some Tesla facilities targeted and sales boycotts reported across the region throughout 2025.
In the UK, Tesla’s sales fell by 60% in July, while China’s BYD Co (USOTC:BYDDY) surpassed the automaker in market share.
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