EV leasing: Tesla cuts UK lease costs by nearly half amid sales slump, report says

British EV shoppers can reportedly lease a Tesla for just over half last year’s monthly rate, as The Times reports the automaker is offering steep fleet discounts to move inventory in the UK, reports Reuters. The news outlet said it could not immediately verify the report and Tesla did not comment.

Leasing discounts and inventory pressure in the UK

Industry sources told The Times that Tesla has been granting up to 40% discounts to car leasing companies, a tactic attributed not only to slower demand but also to limited storage capacity for vehicles in the UK, according to the Reuters write-up of the report. Reuters noted it had not independently confirmed the discounts or the storage constraints and that Tesla did not respond to a request for comment at the time of publication.

July registrations: Tesla’s UK volumes fall sharply

UK registrations of new Teslas dropped about 60% year over year to 987 units in July, based on Society of Motor Manufacturers and Traders (SMMT) data cited by Reuters and other outlets that covered the monthly figures. Overall UK new car registrations declined about 5% in July, indicating a broader market slowdown alongside Tesla’s sharper drop. Despite the dip, battery electric vehicles are forecast to reach 23.8% of new UK registrations in 2025, a slight upward revision from 23.5%, according to the SMMT figures referenced by Reuters.

What this means for UK EV drivers and fleets

If sustained, deeper lease discounts could lower total cost of ownership for UK households and businesses considering EVs, especially if they filter through to popular models used for commuting and fleet duty cycles. Reuters emphasized, however, that its newsroom could not immediately verify The Times’ underlying pricing claims, which means the scale, duration, and model coverage of any discounts remain uncertain as of publication. The broader context in Europe shows Tesla facing stiffer competition and volatility in monthly deliveries, with July declines also reported in other major markets, underscoring the importance of pricing, availability, and aftersales support to sustain share.

Market outlook and pricing dynamics

The SMMT’s modest BEV share upgrade suggests underlying EV momentum continues despite month-to-month swings, while leasing incentives may accelerate near-term uptake if operational bottlenecks—such as storage or logistics timing—are the primary constraint rather than demand alone. For buyers, headline lease reductions—if confirmed and widely available—could reshape monthly affordability versus rivals and internal-combustion alternatives, particularly when converted to budget planning in GBP and USD terms for multinational fleet operators.

EVXL’s Take

The reported up to 40% leasing-channel discounts raise a pivotal question: are these temporary measures to clear constrained UK storage and rebalance inventory, or a structural pricing reset to defend share in a softening market? With Tesla’s July registrations down about 60% to 987 units against a 5% broader market decline, sustained lease reductions could meaningfully improve affordability if they reach retail customers quickly and across core trims, but Reuters’ inability to verify The Times’ underlying pricing claims leaves the scale and duration uncertain for now.

Notwithstanding the monthly volatility, SMMT’s slight upgrade of 2025 BEV share to 23.8% implies electrification momentum continues, making the pass-through of any fleet discounts—and their impact on near-term registrations—important indicators to watch as competition intensifies and buyers weigh pricing against charging access, insurance, and service coverage.

Share perspectives in the comments: Are UK lease incentives decisive for EV adoption right now, or are charging access, insurance, and service coverage bigger swing factors?