Tesla slashes Model 3 and Model Y prices by nearly £10,000

US based electric car manufacturer, Tesla has cut prices of some of its cars by as much as £8,000.

The entry-level, rear wheel drive Tesla Model Y and Model 3 had their prices cut by £7,000 and £5,000. The Model Y, Tesla's best seller went from £51,990 to £44,990, while the Model 3 was cut to £42,990 from £48,490.

The Long Range and Performance variants had dropped by £5,000 and £8,000 to £52,990 and £59,990.

US and European customers have also seen discounts of around $8,000 (£7.4k).

Understandably, many new Tesla owners were furious to hear that the car they just purchased lost thousands of pounds, just a few hours after purchasing their new car. However, this shows that the car market is returning to pre-pandemic normality, when customers expected their new car to lose a significant amount of money shortly after purchasing it, rather than enjoying the car for several months to a year, only to sell it and lose little to no money, which has been the case as a result of the massive increase in second-hand cars due the microchip shortage during the Covid 19 pandemic. 

Tesla's extensive price cuts are a result of a slowdown in demand and increased competition from the likes of Lucid and Polestar as well as well-established manufacturers, such as Volkswagen, General Motors and Mercedes-Benz. Even Apple are excepted to compete with Tesla soon.

These price drops also mirror trend of the overall car market, that shows used car prices dropping around 1.5% a month.