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Published on
August 18, 2025
5 min read
Tesla Offers up to 40% UK Lease Discounts as it Seeks to Regain Lost Market Share
Motorists in the UK will now be able to lease Tesla EVs for just over half of last year’s monthly rate. According to Yahoo Finance, the EV company has introduced Tesla UK lease discounts of up to 40% in a bid to move more units in the country. A report by The Times shows the decision to reduce Tesla lease fees in the UK was also informed by limited storage space.
Tesla UK Sales Drop
The move comes soon after Tesla sales in the UK plunged by close to 60% in July 2025, with only 987 units sold in the month. Overall, new car registrations in the UK dropped by 5% in July, pointing to a wider market slowdown.
Despite this drop, the Society of Motor Manufacturers and Traders (SMMT) projects that new UK registrations for battery electric vehicles will grow by 23.8% in 2025. Tesla has been facing fierce competition from Chinese manufacturers, particularly BYD, which has expanded globally rapidly.
The EV maker will offer leasing companies a 40% discount to enable them to offer cheaper monthly plans to end consumers. With this discount, leasing companies can lease out a Tesla Model 3 for £252 per month plus VAT on a 36-month lease. Last year, customers had to pay between £600 and £700 a month to lease the same car.
Impact of Tesla’s Leasing Incentives
According to the SMMT, the UK market continues to experience electric vehicle momentum despite swings in monthly sales. Leasing incentives such as those offered by Tesla could accelerate uptake of EVs in the short run if operational challenges like logistics timings and storage are addressed. For buyers, lease reductions could also improve the affordability of Teslas compared to the alternatives offered by competitors.
Should Tesla sustain the UK lease discount, it will lower ownership for businesses and households that wish to shift to electric vehicles, particularly popular models that are ideal for fleet duty and commuting. However, details about the duration of the discount, scale, and model coverage remain unclear.
The EV maker continues to face volatile monthly deliveries across Europe with July sales of Tesla’s China-made electric vehicles dropping by 8.4% compared to the previous year. The company delivered 67,886 units of its Model Y and Model 3 vehicles to Europe and other markets. The sales volatility coupled with stiff competition underscore the need for the company to review its pricing strategy, product availability, and after-sale support to sustain its market share in the region.
Besides cutting the lease amount in half in the UK, Tesla is offering zero-interest finance deals in retail stores to increase sales. With these deals, Tesla is expected to write off $6000 for a£40,000 priced EV over a period of three years. This decision is aimed at enabling the US EV maker to move more units without reducing the headline price of its vehicles.
Tesla’s Unlimited Lifetime Supercharging Offer
In Canada, the company is offering customers unlimited lifetime supercharging on all new Model 3 Teslas to increase sales. The unlimited lifetime supercharging offer allows new Model 3 Tesla owners to charge their cars at any Tesla-owned Supercharger station across North America and Canada.
The offer could potentially save Tesla owners thousands of dollars over the lifetime of the vehicle. The offer will be invaluable for people who can’t access home charging as well as those who drive often. Besides the cost benefits, Tesla’s Supercharger network is highly reliable and widespread. This makes the offer more attractive for long-distance travelers and daily commuters.
The latest unlimited lifetime supercharging offer replaces previous promotions under which the EV maker offered either 12 or 18 months of free Supercharging to its companies. Through the new offer, the company is offering qualifying buyers free charging for the entire time they own a new Model 3 Tesla already in the company’s inventory, not to custom factory orders. It’s still early to tell whether Tesla’s promotional efforts will enable the EV maker regain the lost market share in the highly competitive market.
