Tesla cuts price of cars for second time this year to boost demand as competition grows

ELON MUSK’S Tesla has cut the price of its cars in Britain for the second time this year in an effort to boost demand.

The price of a basic Model Y has been reduced by 6pc to £44,320 while the lowest-spec Model 3 is also down 6pc, at £40,470, according to its UK website.

Prices were cut around the world, including a fifth round of discounting in America where Tesla is attempting to fend off competition from established manufacturers as well as newer Chinese rivals. Mr Musk said at an investor day last week: “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla.”

He admitted last year that prices had become “embarrassingly high” and could hurt demand.

In January, the Californian company dropped the price of its models by up to £8,000 in Britain, making some cheaper models almost comparable to affordable brands such as Skoda and Kia. The cuts helped propel Tesla into the top 10 best-selling vehicles in Britain last month. The Model Y was the sixth best-selling car.

British car sales leapt generally by more than a quarter last month as more buyers bought fuel-efficient hybrid cars, hedging their bets between petrol and electric.

Up to 30 new electric brands, mostly Chinese, are eyeing up the UK market, according to an industry report seen a month ago by The Daily Telegraph.