Tesla has reduced the price of the entry-level Model 3 in Britain, in an effort to increase demand for electric vehicles in light of growing competition and slow sales.
The new model of the Model 3 was launched by the carmaker on Tuesday at a price of £39,990. This is 3,000 less than the previous version.
Tesla has cut its prices several times in the US and UK this year as it fights a sales battle with established manufacturers and an entire generation of Chinese automakers.
After Rishi Sunak delayed the ban on new petrol and diesel vehicles, electric car companies also had to deal with questions about demand.
Tesla has recently redesigned its Model 3 range, increasing its range, changing its look, and making controversial changes such as removing indicator stalks to put the controls on the wheel.
According to reports, the new design allows for a reduction in price without sacrificing profits.
Tesla kept its Model Y family size at £44990. The Model Y was Britain’s top-selling electric vehicle last year and the best-selling car model in June of this year.
Tesla announced disappointing sales figures for the third-quarter of the year earlier this month. The company reported a decline in quarterly sales. The company sold 435,059 vehicles in this period, down from the 466,140 cars delivered in the previous quarter.
Musk will reveal the impact of the drop in sales on Tesla’s finances when it releases its quarterly results Wednesday evening. Musk has said he would continue to cut prices in “turbulent” times for the electric vehicle market.
Tesla has recently slashed the price of the Model 3 and Model Y in the US to near-record lows, amid increasing competition. Substantial subsidies for electric cars have boosted sales in the US.
Tesla’s updated Model 3 was released in the US and Europe in late October, but it will not reach UK customers until the beginning of next year. This is due to delays in production caused by the fact that the driver sits on the right side. Tesla has stopped producing its high-end Model S & X in the right-hand configuration.