Tesla UK prices: why has Tesla cut costs and how much have Model 3 and Model Y prices fallen?

Tesla has slashed up to £8,000 from the price of its cars in an effort to make its vehicles “more accessible”.

The American EV brand has cut between 10% and 13% from the list price of its Model 3 and Model Y cars in the UK after similar moves in the US and China. An entry level Model 3 now starts at £42,990 - down from £48,490 - and Model Y starts from £44,990, a reduction of £7,000.

Higher performance versions of both cars have also seen significant reductions. Long Range variants of both models have fallen by £5,000 while the top-spec Performance versions have had £8,000 slashed from their asking price. A Long Range Model 3 now costs £50,990 and a Performance spec costs £57,990. The equivalent Model Ys are £52,990 and £59,990.

The changes mean that the models now undercut several key rivals, including the Kia EV6, Hyundai Ioniq 5, Volkswagen ID.4 and Ford Mustang Mach-E. Tesla has said that any customer who has ordered but not taken delivery of their car will be charged the lower price.