Tesla Model 3 and Model Y prices slashed

The UK’s two most popular electric cars, the Tesla Model 3 and Model Y, have had their prices cut by more than 10%. Here’s everything you need to know...

Tesla Model 3 and Tesla Model Y fronts

Prices for the Tesla Model 3 and Model Y electric cars have been slashed by up to £8000, netting buyers big savings.

An entry-level Tesla Model 3 RWD now costs from £42,990 – a drop of £5500. The prices of the Long Range and Performance models have also fallen, by £6500 and £3500 respectively, with these now costing from £50,990 and £57,990.

Telsa Model 3 and Tesla Model Y charging

This means that the Model 3 now has a lower starting price than its closest rival, the Polestar 2, which starts at £43,150. Long Range and Performance models remain more expensive than their Polestar equivalents but are also more powerful in both cases.

As for the Tesla Model Y electric SUV, prices now start from £44,990 for the RWD model, which is £7000 less than before. The Long Range version is also £5000 cheaper, now starting from £52,990. Like the Model 3, the range topping Performance model has also had a price drop and will set you back £59,990 – a saving of £8000.

The Model Y faces stiff competition from the likes of the Kia EV6 and the closely related Hyundai Ioniq 5. The discounts mean that the Model Y remains more expensive than the Hyundai, but it will cost you less than the Kia.

Kia EV6 2023 front

Tesla says that these cuts are afforded by a “focus on continuous product improvement through original engineering and manufacturing processes”, which is helping to improve efficiency and reduce manufacturing costs.

Tesla also confirmed that it will apply the lower prices to undelivered orders that have already been placed. Those who are waiting for their new Tesla to be delivered are advised to contact their sales representative to ensure that they are eligible.

Similar price cuts were implemented in China recently. However ,Tesla did not offer the same retroactive discounts as it will to UK customers. This led to Chinese buyers protesting about how the sudden price drops were handled.

The move by Tesla contrasts with many other mainstream car manufacturers'; in many cases, new car prices have increased over the last few years, due to inflation and supply-chain disruption.

Semiconductor computer chip

Tesla says it can now offer its cars at a more competitive price, saying: "As we exit what has been a turbulent year of supply-chain disruptions, we have observed a normalisation of some of the cost inflation, giving us the confidence to pass these through to our customers.”

The Model Y was the UK’s best selling electric car in 2022, with the Model 3 coming in second. Overall, 35,551 Model Ys and 19,071 Model 3s were sold over the course of the year.

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Read more: The best-selling new cars of 2022 revealed >>