Tesla is offering U.K. motorists half-price vehicle leasing as it struggles to clear storage lots of unsold cars after a collapse in sales of its products.
The battery-electric-vehicle manufacturer saw sales in the nation fall 60% in July to just 987 units, from 2,462 in same-month 2024, according to the latest data from the Society of Motor Manufacturers and Traders, The Times reports.
As its market share plummets in the face of cheaper Chinese imported vehicles and a chronic lack of vehicle storage facilities in the U.K., Tesla has been forced to offer discounts of up to 40% to car leasing companies to move unsold inventory.
The discounts effectively result in much cheaper monthly lease payments, with a Tesla Model 3 now being leased for as little as £252 ($341) a month excluding taxes, on a 36-month contract at Silverstone Leasing, one of automaker’s sales partners in the U.K.
The same contract for a Model 3 inked in 2024 would have charged the consumer between £600 ($812) and £700 ($948) a month, the newspaper reports.
While Tesla has not cut the purchase price of its vehicles, it is also offering zero-interest finance deals at its retail shops, a move that is estimated to hit its bottom line by about £6,000 ($8,128) over three years for a vehicle with a sticker price of £40,000 ($54,189).
“The main thing is, you can access Teslas at more affordable prices, and a lease is a good way to get a more affordable EV,” Ian Plummer, commercial director at online car marketplace Auto Trader, tells the newspaper.
