Tesla announces price cuts on Model 3 and Model Y in the UK

Tesla has reduced the prices on its Model Y and Model 3, citing their ability to normalise some of the cost inflation.

The Model 3 is now priced from £42,990, while the Model Y is priced from £44,990, - reductions of £5,550 and £7,000 respectively for the entry level models.

Prices have also been reduced by as much as £8,000 on models higher in the range like the Model Y Performance.

In a statement, Tesla said: “Our focus on continuous product improvement through original engineering and manufacturing processes have further optimised our ability to make the best product for an industry-leading cost.

"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.”

Fiona Howarth, CEO of Octopus Electric Vehicles, commented: “It’s no secret that the EV industry has been struggling to keep up with booming demand. The challenge for manufacturers has been to scale up quickly enough - to reduce wait times and get drivers into green cars, with low running costs.

“Tesla is the Apple of the car sector. We’re delighted to see these EV leaders cut prices. By heavily investing in their supply chain, they continue to make EVs increasingly affordable. It’s over to other suppliers to keep up - opening up low cost, fun electric driving for all.”