Tesla has sharply reduced the cost of leasing its electric cars in Britain, offering discounts of as much as 40% to vehicle-leasing firms, according to a report in The Times confirmed by multiple industry sources. The cuts translate into monthly payments for motorists that are about half last year’s level. Pricing sheets seen by leasing companies show a Model 3 can now be leased for as little as £252 a month plus value-added tax on a three-year contract—58 percent below the rate quoted a year earlier. Similar reductions apply across other Tesla models, people familiar with the offers said. The aggressive move follows a steep fall in the automaker’s UK sales. Registrations plunged roughly 60 percent year-on-year to 987 vehicles in July, data from the Society of Motor Manufacturers and Traders show. Industry officials said excess inventory and a shortage of storage space compounded pressure to clear stock quickly. Tesla’s latest price offensive underscores intensifying competition in Europe’s electric-vehicle market, where Chinese brands are expanding and overall demand has softened after the expiry of several incentives. The company has not responded publicly to the reported UK discounts.