Tesla is facing a tough reality in Europe. In the United Kingdom, the company has dramatically cut leasing costs – with the Model 3 now available for less than half last year’s rate – while July sales collapsed by more than 60% year-on-year.

🚗 Leasing Prices Hit Record Lows

Drivers can now lease a Model 3 for just £252 per month, a huge drop from the £600–£700 range last year. The larger Model Y has also seen sharp price cuts, with monthly costs falling to £377–£400, compared to about £700 a year ago.

According to The Times, automakers are offering leasing firms discounts of up to 40% if vehicles are sold within three months. These discounts translate directly into historically low monthly payments for customers.

📉 Tesla’s UK Sales Collapse in July

Fresh data from the Society of Motor Manufacturers and Traders (SMMT) shows Tesla registered only 987 new cars in July 2025 – compared to 2,462 in the same month last year. That’s a 60% drop.

The overall UK auto market fell by just 5% in the same period. Tesla’s decline is therefore not just about weaker consumer spending but also brand-specific issues – from overstocked inventories to waning appeal of its flagship models.

⚡ Rivals Outpacing Tesla

✔ Chinese automaker BYD registered 3,184 vehicles in the UK in July – more than triple Tesla’s figure.

✔ German brands like Volkswagen, BMW, and Mercedes-Benz continue expanding their EV lineups.

✔ New crossovers and SUVs with longer range and lower prices are luring buyers away from Tesla.

Tesla is now losing ground both in image and market share. Analysts warn that aggressive leasing discounts may damage the brand’s “premium status” – at a time when rivals are pushing forward.

🔋 EV Market Grows, Tesla Falls Behind

The UK electric vehicle market is still expanding – EVs are expected to account for 23.8% of new registrations in 2025. But while the market grows, Tesla is falling behind. BYD’s aggressive pricing strategy is paying off, as British buyers increasingly turn to more affordable alternatives.

👉 Tesla faces a dilemma: lower prices help attract customers but erode its exclusive image. Meanwhile, BYD and traditional European automakers are on the rise. Could Tesla lose its once-dominant position in Europe?

#Tesla , #BYD , #ElonMusk , #worldnews

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