Tesla UK BIG price reductions overnight on Model 3 and Model Y with up to 13.5% drop 

I appreciate the short term pain for people, especially right now but this is a big move for Tesla in the context of opening up the market for wider adoption and will also lower used prices which again will make things more accessible for the wider market. We all remember when used prices were higher than new not so long ago.

Talking of the model S, I’m in Athens. Last night I was overtaken (surprise surprise) by a brand new Model S Plaid. All black and shiny - obviously brand new. Looked incredible. Never seen one in the flesh before. Incredible. Made my SR+ feel somewhat antiquated but I still love it.

Turns out cars actually are depreciating assets after all. Who knew!

First of all I’ve to say thanks a lot from your hard works. I always fallow your videos on the RU-vid. I ordered Tesla model 3 long range yesterday and I’m lucky that I’m eligible for the discount.

Massive drops in Sweden too. Base model Y dropped equivalent of 11750 GBP or 22%.

I was waiting for this video to be posted. Richard was the first person that came to mind when I received the email from Tesla this morning.

I ordered back in June, took delivery in November. I haven't "lost" money, I did that purely by buying a new car! Our plan is to keep the car for quite a long time, it's not on a lease so whether it's a forever car or not remains to be seen. You buy in the market at the time, anyone can play the "what if?" game, sometimes it improves, sometimes not. Prices change for any product, same can be said about house prices.

I got a 2 month old rwd demo car last month for 44.8k in grey it still works out cheaper for me as I got the 4.9% interest rate on it so don’t feel to annoyed also got 6k free supercharging miles

There is now the odd situation of existing inventory (used and new) being more expensive than the individual new order.

The Mrs laughed at me this morning a new model Y Performance owner 😢

Great news! I didn't understand people who saw a new or used Tesla as an investment.

Hi Richard, I’ve been watching your videos for some time now and they are really informative. I will soon be the owner of a new RWD Tesla Model Y and your videos have played a big part in convincing me to take the plunge.

Bought my m3LR in blue in November 21 but didn’t get it until June 22, long story but glad I did as price is now still £1k more than I paid but second hand it’s dropped £20k on WBAC!

Prices are still not down to where they were 2 years ago. I bought my 2021 M3 LR cheaper then the latest prices

Thank you. Always interesting to get your perspective Mr S. Keep 'em coming.

I've had cash waiting for almost a year to buy a car, the prices were ridiculously high, they didn't represent value to me. Tesla's are now priced closer to where they should be, after all they are 3rd best selling car with the Y, they've flooded the market pretty much and gone mainstream. I've been watching the prices of Kias, the dealers/traders are still holding out for more money than the things cost new 2 years ago, with 30k miles on them. I feel for those with stock but some reality needs to set it.

In Australia we saw a price reduction announced last week. But while the headline numbers varied across the models, there were some changes to inclusions that pulled these reductions back a bit. For example the M3LR used to come with Sport Wheels as standard but now comes with Aero Wheels. To option these back up is an extra A$1900. Not to mention that you need to pay for a charger now (prev included) and you don’t get the parking sensors anymore. Not sure how this compares in the UK or elsewhere.

Last two years were just a seller market. It felt like Tesla raised their prices a dozen times. Now demand is weakening and they have to sell for a more reasonable price.

Hi Richard, a bitter pill to swallow for you. I hope things work out in selling stock. I paid for my Model Y in cash before the previous price rise, it now has 15k miles so the price reduction has been absorbed by my fuel savings. I never planned to sell it anyway, so no impact here. But great news for new buyers. Alot of phonecalls today to VW etc cancelling orders. It's going to be a blood bath for legacy producers.

bought my model 3 rwd for 48,000 on october 2022, supprised the price went down so quick

Teslas massive margins on their cars tells you the cars were over priced. They used the excuse of material costs but their margins stayed the same. They were removing features while increasing prices. S/X prices have dropped significantly in the states as well. Plaid and LE versions down by about 14/15 and 9/10% respectively. Crazy!

we have the Model Y in Denmark, this has been lowered around £12000 (100000 Dkr.) A lot of newly Tesla owners are crying their eyes out…

I’ve been a bit lucky because I got mine on a lease … but had to wait a very time before it turned up - but luckily I managed to put the order in just before the prices shot up. Rare piece of good luck !

Come on how is this bad news . It’s bad news for you yes but for most people this is great news. I was looking at a used M3LR now it’s a no brainier but to go for a new.

I'm very sorry to hear this within your context as a dealer. I took delivery of mine - M3 RWD in March 22 - the price went up after I bought it by over 5k with my options - now its down to how much mine originally cost.So thankfully i've not lost anything except depreciation over 9 months which is common on all cars.But if this hadn't happened then i'd be happier as less depreciation would have occurred if any.....

I took delivery of a 3 RWD in December, so it’s a little disappointing, but at least I ordered when it was £45k and not £48k. I also made a lot more on my last car than I was expecting so it swings roundabouts I guess. Hopefully it will encourage more to get into a Tesla though 😊.

Took delivery of my Model Y LR a month ago. Price now dropped by £5k. Yeah my second hand value has dropped massively in the space of a month but I didn't buy it to sell or make a profit but as a long term car for family use. I'm looking at it a bit like a house. You can pay market value and the next month the market can crash. If you're buying it to live in it, then it's worth the value you get out of it

Was only a matter time. The people who wanted to pay up for the crazy markups already did so, and now only the more reasonable buyers are left so the prices must come down. Not to mentioned the impact of people having less disposable income and more competition in the EV market. In Vancouver, Canada just 6 months ago, people were still selling used Tesla M3's for MSRP price and 12 months ago they were being flipped for profit, now they're finally properly priced and a few K below MSRP if used. The way it should be. Great news for consumers. For resellers, I'd load up on EV's that are actually hard to get, like the Ioniq 5/6, BMW i4, teslas are no longer as hard to get your hands on, at least that's how it is here in Vancouver. I say all this as someone who owns a Tesla M3LR, even if it takes a hit in used value, that means the car I'm going to be replacing it with in the future should be cheaper as the EV market finally starts to come back down to earth.

Traveld from Glasgow to Manchester on Wednesday morning to pick up my new Model Y performance, only ordered it the Friday before and got it quick because it was in stock, there was a 4 thousand price reduction on it and got the 6 thousand miles free charging included as was collected before the 12th of January, could have saved more but not to upset, my monthly payment would be £50 cheaper at the new price so not all is lost. Keep up the good videos

The M3 Long Range is still at a higher price than what I got mine for in Nov/Dec '21 when it was £48,500.

Ordered my Model Y LR last April, collected it in September. The car was at one point last year worth more than I paid for it, it’s now back to where it was, so no big deal really.

I was happy to see the price of Model 3 come down, didn't realize de Model Y is also now 8000€ cheaper than when I bought mine in feb'22

With increasing electricity prices and falling petrol/diesel prices closing the gap between running an EV vs a fossil fuel car, it must be making an impact in sales of EV’s over recent months. You may argue that EV’s are still cheaper, but they are not maybe as attractive as they once were vs fossil fuelled cars.

Why are people so surprised? It is literally Tesla’s documented mission statement and end goal to lower their prices. They were embarrassingly high (Elon’s own words) Of course if you’ve just taken delivery in the last month or so it’s not good news but surely it was expected? Don’t get me wrong, I’m a newish MY owner myself but I’m not bitter at all, it is moving the EV adoption forward

Thanks for the update. It really is mixed blessings depending on which side of the fence your on…I’m looking to buy so selfishly it’s positive for me. Great content as always. 👍🏻

As always a great video and indeed challenging times. Picked my MYP New Year’s Eve £5k off and 2 years free supercharging … I thought that was a good deal at the time. But wow….. that’s a great deal now …… showrooms will be busy tomorrow.

I have a MYLR on order in Finland and received an automated message today stating I will receive a price adjustment within 48 hours, so hopefully it equals the reduction on their website here which is massive at about €10k. Will see!

pays to look at the bigger picture - falling prices are a good thing, if others follow, whether cars manufacturers or not, and they are doing this to tap demand (and indirectly boost economic spending) as many economies are heading into are recession I think it is overall a good thing - and yes I took delivery of a Model 3 in December 22 and so have taken a big hit. It takes the shine off, but I a super happy with the product nonetheless.

Model 3 long is basically available everywhere in US and Canada, they have loads in inventory. Still not on the order page though which is weird

One thing to watch in the Model Y configurator is that a tow hitch is now added by default. You have to actively remove it from the spec if you don't want one.

Tesla did well in 2020 and early 2021 but not so great now, Tesla stock is volatile and has suffered several corrections along the way to its current high valuation. And if the stock reacts as it did during the 2020 stock split, waiting may not be the best decision for investors..What's the best strategy to make gains in this present market condition? My portfolio is still down by 30% and It scares the hell out of me

Not only have, I just been slammed on a price reduction as I bought last month when I took delivery, there is no parking sensors anymore😮

Am glad. The used market was stupid so this will help calm that down a bit. Great if you’ve recently sold one for more cash but unlucky if you’re trying to sell now. Great news for any new buyers too. 👍🏻

It’s interesting to see that Fiat 500e prices are up significantly in recent weeks! Just checked the used value of my model 3 on we buy any car and it’s down to £25,000 at 10 months old with 27,000 miles (off over 5k since November).

Great video. ❤

This is brilliant news! Can hopefully get the Y on company car scheme!

The MY SR (RWD) with the option wheels is looking S3XY with the new price drop ⚡👍

I got mY when it first launched here & Tesla raised prices & rates of interest thereafter quite significantly. I've compared now like for like model & there is a hit but finance was cheaper back in April 22 compared to 6.9% now! That's insane

I lost 13k since August of 2022. On my LR M3 used prices are killing existing owners! Hoping for a spring high demand to bring it back a little. Wish I had waited just a few months to buy but such is life. Still love my car❤️

Absolutely fantastic news, we are planning on getting the model Y to replace our GLC, this is the perfect time

That is a real Friday13th event for a small business. Hope you are ok and can find a way through it all.

The last quarter production numbers were another record, not a miss. They delivered 405,000 vehicles in Q4, which was 13000 short of the Wall Street analysts guesses. There were plenty of cars in transit worldwide that easily made this up and were delivered in the first week of Q1 23. IMO these reductions are great news for new consumers and shareholders alike. Legacy auto should be really, really worried.

Wow only just seen this,New sales will go through the roof once again,people who have just purchased the last few days are gonna be feeling short changed,used prices taking a hit also.

For me who is hoping to buy a model y this is great news

Things just got interesting. Anyone looking for similar sized EV with similar performance, range and a glass roof will now find that the following Korean competitors are now £2-4K more expensive than a model Y: EV6 GT Line-S Ioniq 5 Namsam Hopefully this will make the entire EV industry more competitive.

Really feel for you, that is tough when you have a load of Teslas. I just test drove a Model Y a week ago and was tempted to sign up there and then but I resisted - am waiting for the company leasing scheme to kick in, its been promised next month. I will be interested to see if leasing a model Y now comes down a bit.

The first steps to normalisation and maturation of the market and a testament to market forces. Tesla is in financial pole position to drive this, which is remarkable. Yesterday, out of curiosity unprompted, I looked up the price of my base M3 RWD on its 1y birthday. Today on the configurator, the expected delivery has fallen from June to March and the price is down 21% to the same I paid just over a year ago (excluding a tax hike of 10%). Yesterday a base model 3 was 80% more expensive than the increasingly popular BYD Atto3, today it’s just 28% more. The consumer is the winner, sorry Richard.

Company car driver here. Tesla Model 3 SR fell off my list of choices over a year ago due to increased lease cost. I guess this will bring lease rates down and increase fleet sales drastically. Weirdly when I ordered I could get a BMW iX3 (list price £62k) in my lease cost band but not a M3 SR. The wonderfully weird world of leasing!

Just a reminder that the prices have dropped that much considering I paid £48,435 for the Long Range that I collected just 13 months ago. (December 2021) The same car today it would be £50,990

No surprise: "We are seeing significant cost pressure in our supply chain," Musk said. "So we've had to increase vehicle prices, at least temporarily, but we do hope to actually reduce the prices over time and make them more affordable."

Hmmm but gutted to see this, have had my Model Y LR for 1 month now, but I also secured it for a really good lease cost, because in Sep last year interest rates were a lot lower. Keep in mind that not all of this discount will translate into a lower lease cost, with rates being high at the moment. If you are buying outright, this is now excellent value…

This is welcome, hoping other manufacturers follow suit. During and shortly after covid all car prices shot up massively and no one seemed to notice !

Great Video, very informative.... Ordered mine Jan 21st Model Y LR and collecting from Manchester 8th March. Im one of the lucky ones who bought at the price drop.

They dropped it just under 45k to satisfy the federal tax credits here in the states. I got the $7500 off msrp 12/31/2022 delivery date. Got it for just under 40k

This will surely be a game changer and place lots of pressure on ALL other EV manufacturers

I was looking at moving away from Tesla when me lease ends after 3 years, scratching around looking at Born, I5 etc due to the pricing! This is game changing and I’ll definitely be staying with Tesla now

I bought an early Model Y Long Range at the original price, which then went up, and has today gone down again. I'm not completely sure but I think my car new would now "only" be about £2000 cheaper, so I'm not that upset.

Maybe they have reduced the prices because they can't sell them with no parking sensors!

Good news - lease prices have dropped nicely 👍 Very tempted to swap my Model 3 for a Model Y RWD.

I have a 2021 model 3 on lease i hope to buy at end of term so lower prices would help me.

That is bound to affect you Richard as the used prices will fall as well and not just Tesla ,a possible realignment of prices across the board from other manufacturers is possible as well as used cars seem expensive by comparison

I can only empathise with your stock in hand falling in value. With many years in IT, I hated when price drops came around.

If I ordered one now can I ask Tesla to wait to register it for the 23 plate, will the Model Y now have the softer suspension , thanks.

Fantastic new prices and possibly get even less soon! Should start to drop used prices in line with the rest of used ev market!

Talked my boss into two model y in December (company cars) bet he's pleased. I'm a bit disappointed as we could have got the long range version now for the same price....Still not my money and enjoying the lower BIK and its a great car.

This is good for the used car market as well, cause I've seen the drop already on Auto trader. But the share prices took a huge dip today, affecting my value.

just bagged a model 3 LR was debating for the past few weeks but now I bought one today

I ordered a Y RWD on a personal lease at £402 per month on friday 13th after the drop, Monday got a phone call from the leasing company to say their funding had been pulled and the only company now was £480pm , but he said to wait till friday and hopefully founders should be live again

It's not a drop at all. Prices are just going back to normal but still too high.

I think some of the reduction is, in part, due to the other manufacturers catching up with Tesla. It's becoming a more competitive market, which is ultimately a good thing for the consumer (but a bit unfortunate if you've just purchased).

Still very similar pricing as 2021 and before... back to normal. If you can afford a brand-new car, you should expect heavy depreciation within the first years anyway. These news only affect resellers / used car dealers. I don't see people complaining when their tech gadgets or clothes go on sale.

Love the vid. As a man in the know, has there been any rumours regarding Model S/X deliveries in the UK?

In Germany the MYLR was cheaper than in other European countries for months while the RWD was similarly priced, so the gap closing was actually predictable, i canceled my order of MYLR in Spain in september when they announced the RWD and saw the price gap. However new models lacking parking sensors and new radar potentially being included soon, not gonna buy one even discounted honestly

In Ireland, the price of the M3 LR became the same price as the yesterdays RWD ha

Great video & we are in funny times. Be interesting to see if they offer any incentives for free super chargers for any Tesla on their inventory?

I feel for you Richard and the team, as much as its sobering for an individual owner, they arn't holding a load of stock that you are going to have to use your own demand levars on to shift. I'm in the lucky positon that I existed a lease last year (that I signed up to before all the lease madness) and bought a short term Niro PHEV with the intention of getting a 2-3 year old M3 as they all started to come off lease this summer (as I forsaw that as a natural inflection point on pricing) this reduction down to where Tesla should have been (lets not forget they had ramped up these prices due to production shortages / high demand) will be a second kicker for those used prices. So yeah some winners out there, but I'd hate to be smug, as I've been burned on cars too many times that coming up smelling of roses once doesn't mean that ultimately the house still always wins.

The US government tax credit for cars under $55000 maybe pushed them to do it earlier but reduction in price was in the Tesla plan. There are a lot of second hand Tesla's being sold out there at stupidly high prices hopefully this will help them to reduce over time and become available to the average person who at the minute can't afford one.

No Y Long Range in Australia either. Surprising given the distances and reduced super charging network.

The price in New Zealand hasn't dropped as much. It's still above what we paid for our M3 SR+ at the end of 2021.

I think the Model Y Performance was way to pricey. I think the 2nd car prices in general have been softening. I can see all the other Auto shares tanking too today - because they will have to match the drops or lose market share.

Really strange how there is Tesla oversupply and KIA are quoting 30 weeks for EV6 with a price increase.

Also worth pointing out that the APR for those on PCP/PCH deals is now higher, so the overall monthly cost is roughly the same as before the price reduction. If you're paying cash, however, you're laughing!

As the owner of a 2019 model 3 LR with 75K miles on it not much impact. To be honest though the ever increasing prices over the last few years where incompatible with the Tesla stated mission of moving the world to a sustainable transport infrastructure. Ultimately lower prices will speed up the transition by making the cars obtainable for an ever increasing number of people. However as stated by others do feel for you sitting on a large amount of stock - if I had to guess waiting lists will increase for new cars, increasing demand for used cars for those not prepared to wait. Interesting times

Also, saw the Tesla inventory today, they have a lot of cars in inventory. Model Y P order today, probably get it next week

More than happy that I got a company M3 (leased) at the end of December with additional 6k supercharging miles for free. I don't think that these reductions would pass on to leased cars (why to? residuals will be lower). I would be frustrated though if I would buy it 3 weeks ago...

In the US the model S went down $10K. The model X also went down and both come with the option of a round steering wheel. Interestingly the price of FSD and enhanced autopilot have not changed. Maybe Tesla hopes to make up some of the difference with a increase take rate of those options which is basically all profit.

Bloody hell that’s a reduction and a half gives me hope to afford a model 3. Take it second hand values just took a major hit too. If it did that kind of drop again in the U.K. a model 3 will be on the drive. Go on Elon when the time is right and more savings in production is found pass some of it on to the customers. 👍

As an outsider looking in it does appear that Tesla very actively manages the waiting list for its cars by increasing/reducing the price of new ones. Not typical for the car industry and I guess you just have to make sure your business model can cope with price changes. Only last year you traded your nearly new Model Y for a brand new one as the price of the nearly new one meant you did not suffer any depreciation on it, if I recall correctly. I am not trying to make light of the situation for your business, just giving an example of how the used market will follow the new car prices and sometimes it will be good for you, other times not. Hopefully over time the peaks and troughs will even out. All the best.

March this year my model 3 LR will be two years old. I have never kept a car longer than 12 months but it has been simply amazing as my work vehicle and the best car I have ever owned. In September last year we changed my wife’s x5 hybrid to a LR Model Y just before the last price increase. The drop now means it’s about £2500 cheaper than when we purchased the vehicle. Not terrible but my long range valuation by Tesla went from £39000 to £33000 too which means Tesla’s now depreciate at a similar rate to most ICE cars. I’m not overly concerned about it as I purchased before many price increase but I genuinely feel it’s a very sharp practice by a company letting someone purchase a vehicle knowing full well that the very next day they will be cutting the price by such a substantial amount. I understand business is business but everyone will remember this and the entire purchasing process of Tesla was world leading with other manufacturers now starting to follow the template. I loved the experience of purchasing my Tesla’s. No salesman and you just pay the sticker price but this move has destroyed that relationship. Tbh Tesla should of emailed everyone who has purchased in the last three months and offered a £2000/3000 rebate or £5000 off another Tesla in the future. They have damaged the brand and their model by being so aggressive and callous.

I feel for you Richard. Running a business where you have lots of stock where you have committed on one price and that stock is worth a big percentage less through no fault of your own. Hopefully you have some cars from other brands to soften the blow.