Tesla Cuts Monthly Payments Amid UK Sales Slump

Tesla has almost halved monthly payments for its UK customers due to a slump in sales. The company, which designs and sells electric vehicles, has seen a decline in demand in the UK market. The group's net sales are primarily generated from automotive vehicles, services, and energy generation and storage systems, with a significant presence in the US, China, and other markets.

British motorists can now lease a Tesla electric vehicle for just over half of what they would have paid a year ago, according to industry reports [1]. Tesla Inc. has been forced to offer significant discounts to car leasing companies to shift more units, with some reports suggesting discounts of up to 40% [1]. These discounts are also attributed to the lack of storage space for Tesla vehicles in the UK [1].

The move comes as Tesla's sales in the UK have slumped. In July 2025, Tesla's sales fell about 60% to 987 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT) [1]. This decline has pushed Tesla’s market share to 0.7% in the UK, while Chinese rival BYD claimed 2.3% of all new registrations [1].

In contrast, global electric vehicle (EV) sales are still riding high. According to new data from global research firm Rho Motion, 1.6 million EVs were sold in July 2025, up 21% from July last year [2]. This brings total EV sales for the first seven months of the year to 10.7 million, up 27% compared to the same period in 2024 [2].

However, the UK's EV market is not immune to challenges. While Europe as a whole saw a 30% year-to-date jump in EV sales, the UK's growth was at 32%, slightly behind Germany's 43% [2]. France, despite its efforts to boost EV leasing for low-income households, saw a 9% year-over-year gain in July and is still down 11% for the year [2].

Tesla's strategy of offering lower monthly lease payments and zero-interest finance deals is a response to the competitive market. The company aims to boost sales without significantly reducing the headline price of its popular models [1]. This approach is expected to cost Tesla about £6,000 over three years for a £40,000 vehicle [1].

In summary, Tesla's halving of monthly lease payments in the UK is a strategic move to counter a slump in sales. The company is facing stiff competition, particularly from Chinese rivals, and is using financial incentives to stimulate demand. Despite these challenges, global EV sales remain robust, with China leading the way and Europe showing significant growth.

References:
[1] https://www.reuters.com/business/autos-transportation/tesla-almost-halves-uk-monthly-lease-fee-sales-slump-times-reports-2025-08-18/
[2] https://electrek.co/2025/08/14/global-ev-sales-hit-10-7m-in-2025-europe-surges-us-stalls/