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Manufacturing & engineering

Tesla slashes UK lease costs as sales slump and Chinese rivals gain ground

Tesla Inc (NASDAQ:TSLA) has slashed the cost of leasing its cars in Britain, with monthly payments now barely half the level of a year ago, according to The Times.

The electric carmaker is offering discounts of up to 40% to leasing companies, which are passing them on to customers.

A Model 3 can be leased for as little as £252 a month before VAT, while the newer Model Y has been advertised below £380.

Analysts say the strategy allows Tesla to boost sales without cutting headline retail prices, which remain around £60,000 for the Model Y.

The company has also introduced zero-interest finance in its showrooms. UK Tesla sales fell 60% in July, while Chinese rival BYD increased market share.