Tesla is offering reductions in the monthly lease fees for its electric vehicles in the UK, with rates now just over 50% of what they were a year ago, The Times reported, citing sources within the industry.

This move comes as the automaker attempts to navigate a challenging market, with a reported 40% discount being offered to car leasing firms to stimulate more sales.

The necessity for these price cuts has been partly attributed to Tesla's lack of storage capacity for unsold vehicles in the UK.

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), Tesla's UK sales in July experienced a sharp decline, with only 987 units sold, marking a 60% drop.

This is in the context of an overall UK market contraction of 5% in July.

In addition to these developments in the UK, Tesla has announced the upcoming release of its Model Y L on Weibo, the social media platform of China.

This new variant, which features six seats and a longer wheelbase, is part of Tesla's strategy to refresh its product line amidst intensifying competition, including new entries such as Xiaomi's YU7, stated the publication.

Tesla's sales in China have also taken a hit, with an 8.4% decrease in July for its locally manufactured EVs.

The company is facing stiff competition from Chinese brands offering more affordable EVs amidst a price war that has affected automakers across the board.

Moreover, the company is planning to introduce a new longer-range, rear-wheel drive Model 3 to the Chinese market, as revealed in a recent industry ministry filing.

In the US, Tesla secured a licence to operate its robotaxi service in Texas, aligning with the state's new autonomous vehicle regulations.