Motor Trader The award-winning and longest running UK magazine for car retailing professionals. Your first stop for News, Jobs and Reports for the motor industry.
Tesla has announced price cuts on entry level models. The Model 3’s starting price has dropped from £51,090 to £42,990, and the Model Y Performance from £67,990 to £57,990. The move follows similar pricing cuts in China and the US.
Tesla was the fifth fastest growing car brand in the UK last year with sales up 56% to 54,622 units. In December it delivered over 16,000 cars to customers.
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.”
Paul Hollick, chair, Association of Fleet Professionals, said: “While they are not without problems, these price cuts are generally being welcomed by our members.
“Simply, they make mainstream EVs more affordable to businesses and should put pressure on other manufacturers to take similar action in the coming weeks and months. In an EV market that has seen prices rising almost month-on-month recently, this is good news, we believe.
“However, it has also introduced an element of disorderly marketing for Tesla, which is never good news for residual values, and it will be interesting to see the reactions of both leasing companies and the pricing guides in the next few days.
“There is also the matter of businesses that have just bought Teslas or have them on order at previous prices. The differences between the new and the old prices are substantial and a move of this kind does unavoidably create ill-feeling. The company would do well to introduce some kind of redress.”