U.S. EV giant Tesla has reduced the prices of its Model 3 and Model Y in the U.K. as demand remains weaker than hoped.
In the UK, the base Model 3 now starts from £42,990 and Model Y starts from £44,990, the company said – compared to the previous starting prices of £48,490 and £51,990 respectively.
The Long Range Model 3 is now £50,990 (formerly £57,490) and the Model Y equivalent £52,990 (formerly £57,990). The Performance Model 3 and Y are now £57,990 and £59,990 respectively (formerly £61,490 And £67,990 respectively).
The company started reducing prices last year across its major markets and offered credits to customers to shore up demand.
In 2022, Tesla broke records globally with vehicle deliveries growing 40% YoY to 1.31 million and production increasing 47% YoY to 1.37 million, the company said. In Europe, the Model 3 and Model Y became a regular feature of the vehicle sales podium across many markets; not just for EV’s but across all powertrains, it said.
Despite significant challenges last year ranging from the semi-conductor shortage, energy crisis, logistics constraints and further COVID-related disruptions, the company continued to lay the foundations for its future growth by regionalizing production and supply chains, it said. “We also began the transition to a more evenly spread distribution strategy to diminish logistical and delivery peaks.”
The company said its focus on continuous product improvement through original engineering and manufacturing processes have further optimised its 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 normalization of some of the cost inflation, giving us the confidence to pass these through to our customers,” the company said, explaining the price cuts. “As local vehicle production continues to increase and we gain further economies of scale globally, we are making the Model 3 and Model Y even more accessible across EMEA,” it added.