Tesla cuts prices by up to a fifth in US and Europe as EV price war starts

Tesla has cut the prices of its cars in the US and Europe by up to a fifth as it contends with slowing demand and increased competition.

Carmakers around the world are ramping up production of electric vehicles to comply with bans on internal combustion engines that will start to come into force in the UK and Europe at the end of the decade. Tesla faces competition from new electric-only rivals such as Lucid, Fisker and Polestar as well as electric cars from long-established brands such as Volkswagen, General Motors and Hyundai.

The price of the cheapest Model 3 saloon car, the rear-wheel drive version, dropped by £5,500 to £42,990. The cheapest Model Y crossover dropped to £44,990, although the biggest cut was applied to the most expensive Performance version, which dropped by £8,000 to £59,990.