- Entry level Model 3 now starts from £37,340 or £395 per month
- Model 3s only offered in three variants, Model S and X to be offered in just two
- Black paint now £750
Tesla has slashed the pricing of its new Model 3, despite only going on sale in May 2019.
The entry level Model 3, the Standard Range Plus with a 254-mile range, now starts from £395 per month, or £37,340. This price is inclusive of the Government Plug-In Car Grant of £3,500. Previously, it cost £38,900.
Tesla is also ditching some basic trim levels for all three of its models in order to standardise line-ups globally.
Model 3s will only be offered in Standard Range Plus, Long Range All-Wheel-Drive, and Performance variants. Model S and Model X cars come in just two variants - Long Range and Performance, the latter inclusive of the ramped-up Ludicrous mode. Prices for both cars in Long Range have been reduced by £800. However, there is a £6,300 increase for the Model S Performance and a £5,900 rise for the Model X.
A Tesla spokesperson said: 'we are standardising our global vehicle lineup and streamlining the number of trim packages offered in order to make purchasing our vehicles even simpler. Like other car companies, we periodically adjust pricing and available options.'
Tesla also reiterated to Parkers that it was common for the company to change trim levels in line with customer feedback. Elon Musk, product architect of Tesla and meme connoisseur, insists that the Model 3's biggest rival is the BMW 3 Series, rather than other electric cars like the Nissan Leaf.
Breaking in to the sub £400 per month bracket was an important milestone for Tesla in the UK, according to a Tesla spokesperson. Within this bracket, you could get a petrol BMW 3 Series in 320i M Sport guise for £399, admittedly with a cheaper deposit (£4,539 compared with £6,000) with the same APR rate of 4.9%. Both cars have a 48-month contract and annual mileage limits of 10,000.
Tesla Model 3 pricing
The headline news here is that Tesla's cheapest model, the Standard Plus Rear-Wheel Drive, comes in at under £400 per month. It should be noted that this representative example only applies to new vehicles ordered before July 31, 2019.
Personal Contract Purchase example:
On the road cash price: £37,340
48 monthly repayments: £395
Customer deposit: £6,000
Optional final payment (including £1 purchase fee) £17,156
Representative APR: 4.9%
Mileage per annum: 10,000
Excess mileage charge: 9.4p per mile
Total amount payable £42,123
Interest charges: £4,248
Long Range models will set you back £602 per month via PCP, or £682 per month on a Hire Purchase deal. Performance models start from £590 per month with PCP, or £751 per month with Hire Purchase.
Black paint, which was previously a no cost option, now costs £750. A white interior costs an additional £950, while making it semi-autonomous (level three) will set you back £5,800.
Tesla Model 3 leasing
Our leasing partner, ZenAuto has announced that the Model 3 will be available from September/October for personal lease for the following terms. The Standard Range RWD Plus will cost from £415 per month for 8,000 miles per year over a 24-month period, with a £3,250 initial payment, plus £199 processing fee.
*This deal is indicative of some packages available as at 25th July 2019 but are subject to change without prior notice. Everyone's financial circumstances are different, and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically. Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited. Terms, conditions and exclusions apply.