Tesla slashes price of its electric cars by up to £9,100 with immediate effect

Tesla has announced it has slashed the price of its electric cars in the UK with immediate effect, which will be likely to spark outrage among existing customers – especially the 16,000 who took delivery of vehicles at the higher price just last month.

The auto maker announced it has cut the price of both the Model 3 and Model Y as of today across Europe and the US. In the UK, prices have been lowered by as much as £9,100, with the company citing ‘normalisation of some of the cost of inflation’.

The move is a double-blow for existing owners, with This is Money revealing earlier this week that demand for used Tesla cars has plummeted in the last four months, with the price of year-old examples dropping by more than a fifth compared to their value in January 2022. 

The Model Y SUV – the best-selling electric car in Britain last year and the third most-bought new car across all fuel types – now starts from £44,990, having cost customers from £51,990 up until Thursday evening.

The biggest reduction is on the range-topping Model Y Performance, which now costs £59,990, having previously been priced at just over £69,000.

As for the Tesla Model 3 – last year’s second most popular new battery electric car – the entry price now starts at £42,990.

This could see a rise in demand for Tesla’s smallest car, with the price cut meaning the Model 3 now costs less than some of its biggest rivals.

It will undercut the Kia EV6 (from £45,245) by £2,255 and also ring in at £160 less than the entry Polestar 2 (from £43,150).

Source of data and images: dailymail