Tesla Is Running Some Serious Discounts As Sales Continue To Crash

Tesla is having a bad year, with a double-digit percentage decline in global sales thanks to a combination of fairly obvious factors. In response, the automaker is piling on the discounts, especially in markets where sales are really slumping. Depending on where you live, it might be the best time to buy a Tesla in ages, provided you’re not terribly concerned with optics.

At the same time, Germany isn’t happy with the European Union’s negotiated U.S. tariff rate on cars, Acura looks to bring back hybrids just years after discontinuing all of them, and DC fast chargers might be making the air around them slightly worse. Weird, that.

Welcome back to The Morning Dump, where we corral the freshest bite-sized automotive news stories and assemble them into a sort-of information casserole for your enjoyment. At least, I think that’s what a casserole is. I’m not actually sure, and I don’t even know if I want to know. All I know is that they sometimes involve unspeakable uses of tuna. Anyway, Matt’s travelling today, so I’m in the kitchen this morning. Let’s get into it.

Tesla Juices Deals As Its Bad Year Continues

Typically, when supply of a particular model of car outstrips demand, the way to move all that metal is to throw some cash the consumer’s way by discounting cars, subsidizing interest rates, adding freebies, or if an automaker’s really desperate, a combination of all three. Just look at Tesla right now. A precipitous drop in sales in several important markets outside of the United States has resulted in the company throwing some serious incentives at its cars. Let’s start in Britain, where the Times reports:

Tesla sales in the UK dropped by 60 per cent in July to 987 units, from 2,462 a year earlier. The decline pushed Tesla’s market share to 0.7 per cent, while China’s BYD claimed 2.3 per cent of all new registrations, according to the latest data from the Society of Motor Manufacturers and Traders.

While it’s easy to chalk this one up to the antics of the man in charge of the company, that likely isn’t the only factor. Car shoppers in the United Kingdom can get into inexpensive Chinese-made EVs, and some of them have fairly strong showroom appeal. Alright, so an MG S5 EV has some bits inside it that feel a bit cheap, but guess what? It starts at £28,745 for a spacious Model Y-sized electric crossover. So, between increased competition, a decline in public sentiment, and a reported shortage in places to put unsold cars, Tesla is incentivizing leases big-time. As the Times reports:

A Tesla Model 3 can be leased for as little as £252 a month plus VAT on a 36-month contract at Silverstone Leasing, one of Tesla’s partners in the UK.

Tesla’s latest model, the Model Y, retails for about £60,000, but it was advertised for as low as £376.97 a month plus VAT on Synergy Car Leasing’s website last week. Other deals on the Model Y, which was only launched in May, were priced at just over £400 a month.

Those are significant incentives at play considering a lease on a Model 3 used to be about double that, and Britain isn’t alone. Up in Canada, General Motors has overtaken Tesla to be the top seller of battery electric vehicles after Tesla sales fell by 67 percent over the first half of 2025. As Automotive News reports, “Buyers registered slightly more than 9,000 Teslas from January through June, far short of the more than 26,000 in the first two quarters of 2024 according to data from S&P Global Mobility.” Clearly, things haven’t turned around substantially because Tesla is now offering free lifetime Supercharging on in-stock Canadian Model 3 sedans, along with thousands of dollars on the hoods of in-stock examples and freebies like no-charge premium paint and upgraded wheels. Even in the States, Tesla is offering programs like a $299-per-month 24-month Model 3 lease with $3,000 down and a 10,000-mile annual limit.

It’s a stark difference from a few years ago, when a new car bubble let Tesla hike pricing without turning off too many buyers. So, will incentives be enough to claw back from a 13.5 percent year-over-year decline in global Q2 deliveries? Maybe, maybe not. Still, if you can live with the current social stigmas that some assign to Tesla ownership, there are some deals to be had.

Tariffs And Buts

If there’s one thing we’ve likely learned in recent years, it’s that nothing’s over until it’s over. The European Union has negotiated a 15 percent tariff rate with America, but it’s not quite set in stone just yet. Unsurprisingly, an agreement between the two entities hasn’t been finalized, and cars are shaping up to be a huge sticking point. As Reuters reports:

“In particular, car tariffs must be reduced quickly as agreed. We are also aware of the considerable burden on the export-orientated economy. … Our role here is to continue to fully support the European Commission in this process,” a German government spokesman said in a press conference.

Considering how significant the American market is for German automakers, it’s only fair for Germany to object to the current tentative tariff rate. After all, not only is America the second-largest market by volume for BMW and Mercedes-Benz, it’s also the largest single-country market for Porsche. Does the door swing both ways? Well, the made-in-America Ford Mustang was Germany’s favorite sports coupe in 2017, 2020, and 2021, so there is at least some demand for certain American cars in Germany. No matter how you look at it, there’s big money on the line here, and we’d expect sensible negotiations if these were more precedented times. Unfortunately, we aren’t living in precedented times, so hold onto your hats because this all has the potential to go sideways.

Acura Is Pivoting Back To Hybrids

It’s been a big year for backtracking. While Acura is set to launch its second EV next year, the RSX crossover, the brand seems to be recognizing that the leap from combustion-powered vehicles straight to battery electric vehicles was premature. As American Honda director Katsushi Inoue told Automotive News:

“We will maximize the production of ICE and hybrid models to meet the needs of our customers and to fuel investment in the technology,” Inoue said.

“But we have not changed our commitment to electric vehicles,” he said. “It’s just about adjusting the timing to match the needs of the customers.”

Despite the brand previously offering the MDX Sport Hybrid crossover, RLX Sport Hybrid sedan, and NSX hybrid supercar, all those models have disappeared over the past few years. The RLX and NSX are gone in their entirety, and the MDX has gone all-combustion, meaning Acura currently doesn’t sell a hybrid in North America. It does offer the GM-built ZDX electric crossover, but customers who don’t want a full-on battery electric vehicle don’t have a middle ground in the Acura lineup anymore. Bringing back hybrids would allow Acura to better compete with Lexus, along with plug-in hybrid offerings from European brands.

Although we don’t yet know which Acura models are going hybrid, the Integra sedan and ADX crossover would both benefit from the Civic Hybrid’s powertrain, especially since both models ride on the Civic’s platform. Likewise, we’re coming due for a new RDX compact crossover soon based on a historic six-year model cycle for the vehicle, and with the new CR-V benefitting from a hybrid powertrain, don’t be surprised if it’s considered for the next RDX.

Dirty Chargers

Thanks to a combination of the scientific process and everyone being very tired, new developments happen, better studies are run, smart people find out new stuff, and the stream of both knowledge and outdated information eventually becomes saturated to the point where nobody can keep track of, say, whether eating butter is better or worse than eating margarine. If that doesn’t wear you out enough, here’s a new one: Researchers have found that DC fast charging stations may contribute to local air pollution. Wait, what?

According to researchers at the University of California, the fans inside DC fast charging power cabinets can kick up dust and other settled PM2.5 fine particulate matter, which seems rather obvious. However, how bad is this, really? As Bloomberg reports:

Researchers took air quality measurements at 50 direct current fast charging stations in Los Angeles County, California, the majority of which were Tesla Supercharger locations. The company did not respond to a request for comment.

The average concentration of fine particulate matter in the air at the charging sites was 15.2 micrograms per cubic meter, slightly higher than what researchers found at gas stations and significantly higher than in other urban locations such as parks.

Alright, so, not ideal considering the EPA annual average limit for PM2.5 sits at nine micrograms per cubic meter, but it could be way worse. For instance, cooking can easily spike localized PM2.5 well beyond 15.2 micrograms per cubic meter, and most of us do that every dar. Besides, this certainly isn’t an insurmountable problem, as exhaust filters could help reduce fine particulate matter thrown up by charging cabinet fans. Who knows? Maybe a consumable like that would actually require charging companies to maintain their stuff.

What I’m Listening To While Writing TMD

“Need For Speed: Hot Pursuit 2” was a good time, yeah? While Hot Action Cop got the most coveted spot on the soundtrack, accompanying the intro sequence, “Build Your Cages” by Montreal-based alternative metal band Pulse Ultra also ripped.

The Big Question:

What’s your big prediction for what happens to Tesla next?

Top graphic image: Tesla