Asger Risom
Cheaper Tesla Model 3 launched as rivals close in.
A shift is under way in the UK’s electric car market, as pressure from lower-priced rivals forces established brands to respond. One major manufacturer has now made a decisive move aimed squarely at cost-conscious buyers.
Market pressure
Tesla has come under growing strain after losing its position as the UK’s leading electric car brand in 2025. Sales of Chinese-built models surged last year, reshaping competition at the more affordable end of the market.
According to industry sales figures cited by Express, BYD sold more than 51,000 cars in the UK in 2025, overtaking Tesla, which recorded around 45,500 sales. That marked a fall of nearly 5,000 vehicles year on year for the American firm, a drop of 9.58%.
Newer Chinese entrants such as Omoda, Chery and Jaecoo have also gained traction with British buyers, adding further pressure.
A price reset
Tesla has now responded by launching a cheaper version of one of its best-known models. The newly priced Model 3 Standard undercuts the existing entry-level version by £2,000.
Prices for the new car start at £37,990, bringing it closer to mass-market rivals and significantly below many European competitors.
The move places the Model 3 around £13,000 cheaper than a BMW i4, roughly £7,600 less than a Mercedes CLA Electric and about £7,000 below a comparable Polestar, according to Express pricing comparisons.
Targeting rivals
The revised pricing also positions the Model 3 directly against Chinese competitors. The BYD Seal, one of Tesla’s closest challengers, is priced around £7,600 higher.
Tesla has also leaned on finance offers to widen appeal. Leasing deals mean the new Model 3 can be secured from £299 per month, based on a £3,588 deposit over 36 months.
Industry watchers say the strategy is designed to halt Tesla’s loss of ground at a time when lower-priced EVs are flooding the UK market.
What’s changed
To reach the lower price point, some features have been scaled back. The Model 3 Standard uses cloth seats rather than leather, and the cover over the cupholders has been removed.
Despite this, UK buyers still receive more equipment than customers in some overseas markets, including larger wheels than those fitted to the US version.
Performance intact
The car is powered by a battery of around 70kWh, delivering up to 332 miles of range on a single charge.
Performance remains competitive, with a 0–60mph time of 6.2 seconds, although the top speed is electronically limited to 110mph.
Sources: Express, Tesla
