There’s long been a need for electric vehicles to become cheaper to help persuade more motorists to make the switch, and Tesla has taken a big step in that direction by wiping thousands from the price of some of its range.
The Elon Musk brand cut the entry-level price of a Model 3 by £5,500 to £42,990, while the extremely popular Model Y, which has a 283-mile range and a top speed of 135mph, is now £44,990, following a huge cut of £7,000.
The price cuts are in the range of 10 percent to 13 percent in the UK, although motorists in the USA could save as much as 20 percent.
Teslas share price has taken somewhat of a battering over the past couple of years which has only worsened since Musk took public charge of Twitter. Shares are currently worth around 40% of what they were two years ago.
The brand, which led the way globally in sales of electric cars, is now facing increasing competition as VW Group and a host of Chinese manufacturers begin to take market share back from Tesla so this move may well be an attempt to solidify its position at the top of the electric tree.
New Tesla owners aren’t happy about the price cuts which will significantly impact the resale value of their cars. One posted on a Facebook group for Tesla owners: "I just picked up the car yesterday. What should I do? Go to Tesla and give back the car? I can't believe after a few hours from picking up the car I lost £5k".