Tesla Halves UK Lease Prices As Sales Collapse And Legal Pressure Mounts

[Desmond Milligan 0]

Tesla Halves UK Lease Prices As Sales Collapse And Legal Pressure Mounts originally appeared on Autoblog.

Tesla has nearly halved the cost of leasing some of its most popular cars in the UK after a brutal summer of sales. Model 3s that were nudging £600–£700 a month just a year ago are now going for as little as £252 plus VAT, while the Model Y has slipped under the £400 mark.

The deals aren’t advertised directly by Tesla, but leasing firms say the brand is quietly funneling them significant discounts to keep unsold inventory moving. It’s a way to protect headline retail prices while keeping the pipeline from jamming up with unclaimed EVs — a neat trick on paper, though it hardly screams confidence.

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Sales Slide 60% As BYD Surges

The move comes after a disastrous July, when Tesla’s UK registrations plunged 60% year-on-year. Fewer than 1,000 cars were delivered in the month, leaving the brand with just 0.7% market share and marking one of its weakest showings since entering the market. The sharp drop highlights how quickly Tesla’s dominance is being eroded as traditional automakers and new rivals step up their electric offerings.

To put it bluntly, Tesla is losing ground fast while rivals are finding their stride. Chinese automaker BYD, for instance, quadrupled its UK sales in the same period, topping 3,000 deliveries. For a company once synonymous with EV dominance, this is a reversal with sharp edges. Worse, the slump is mirrored across Europe, where Tesla’s numbers continue to erode despite growing overall EV adoption.

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Legal Headwinds Pile On

Cheaper leases are only one battlefront. Tesla is now juggling an increasingly messy legal calendar that could sap time, money, and investor patience. The company faces nine major legal fights, ranging from union crackdowns to regulatory probes worth billions.

Meanwhile, Musk’s heavily hyped robotaxi project has veered from savior narrative to legal nightmare after shareholder lawsuits triggered a $68 billion market cap plunge. And in Florida, a $243 million verdict over Autopilot sparked fresh lawsuits, with California trials looming. The timing couldn’t be worse: fighting for market share while also fighting for survival in court.

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What It Means For UK Drivers

For British buyers, this all adds up to a rare opportunity. If you’ve been sitting on the fence, these heavily discounted leases make Tesla ownership cheaper than ever, especially compared to rivals who aren’t slashing terms so aggressively. Yet the discounts also hint at deeper structural weaknesses.

Tesla is fighting softening demand, rising competition, and now an onslaught of courtroom challenges, all while Elon Musk juggles politics, rockets, and promises of full self-driving. Bargains may be there for the taking, but whether Tesla can keep them coming is an open question.

Tesla Halves UK Lease Prices As Sales Collapse And Legal Pressure Mounts first appeared on Autoblog on Aug 18, 2025

This story was originally reported by Autoblog on Aug 18, 2025, where it first appeared.

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