Does any Tesla qualify for the Electric Car Grant?
The cheapest Tesla sits £990 above the grant's price cap, and the Model Y is £7,990 above it. Here is what that means for UK buyers, and what a grant-eligible rival costs instead.
Quick answers
- No Tesla qualifies for the Electric Car Grant in November 2026, and no Tesla appears in either band of the government's eligible car list.
- The cheapest Tesla, the Model 3 Standard, is listed at £37,990, which is £990 above the grant's £37,000 price cap.
- The cheapest Model Y, the Rear-Wheel Drive, is listed at £44,990, which is £7,990 above the cap and £2,990 above the £42,000 ceiling that applies to dearer versions of qualifying cars.
- Price is not the only barrier: 70% of a car's environmental score depends on where its battery is made and 30% on where it is assembled, and the Model 3 Standard is built in Shanghai.
- A Kia EV4 Air with the 81.4kWh battery costs £33,245 after its £3,750 grant, £4,745 less than a Model 3 Standard, with 388 miles of WLTP range against 332.
- Company car drivers lose little from the missing grant, because a 40% taxpayer pays about £51 a month in benefit-in-kind tax on a £37,990 Model 3 at the 4% rate.
No Tesla qualifies for the Electric Car Grant. The cheapest Tesla on sale in the UK, the Model 3 Standard at £37,990 in November 2026, is £990 over the grant’s £37,000 price cap, and every Model Y is at least £7,990 over it.
The Electric Car Grant takes up to £3,750 off eligible new electric cars at the dealer, and it has changed which EVs look good value in 2026. Tesla is not part of it. This guide sets out how far each Tesla sits from the cap, why a price cut alone would not settle the question, and what the missing grant means for private buyers and company car drivers.
Is any Tesla on the Electric Car Grant list?
No. The government’s eligible car list names 20 models in Band 1 (up to £3,750 off) and 48 entries in Band 2 (up to £1,500 off), and none of them is a Tesla. Brands on the list include Renault, Kia, Ford, Skoda, Volkswagen, Nissan and BMW.
Tesla currently sells two models new in the UK, the Model 3 and the Model Y. Both are absent from both bands, so there is no Tesla trim, battery or wheel size that brings the grant into play. Our latest eligible models guide covers the cars that do qualify.
How far is each Tesla from the £37,000 cap?
To qualify, a car must have a recommended retail price, including VAT, of £37,000 or less, according to the government’s manufacturer guidance. Dearer versions in the same family as a qualifying car can still get the grant, but only up to a hard limit of £42,000, a rule Auto Express reported being added in August 2025.
EV Compared calculation: gap = Tesla list price minus £37,000, using the UK cash prices from 1 October 2026 reported by EV Industry News and still shown by Carwow in November 2026.
| Tesla version | List price (Nov 2026) | Gap to £37,000 cap | Above £42,000 limit? |
|---|---|---|---|
| Model 3 Standard (RWD) | £37,990 | £990 | No |
| Model 3 Premium Long Range RWD | £44,990 | £7,990 | Yes |
| Model 3 Premium Long Range AWD | £49,990 | £12,990 | Yes |
| Model 3 Performance | £59,990 | £22,990 | Yes |
| Model Y Rear-Wheel Drive | £44,990 | £7,990 | Yes |
| Model Y Premium Long Range RWD | £49,990 | £12,990 | Yes |
| Model Y Premium Long Range AWD | £52,990 | £15,990 | Yes |
| Model Y Performance | £61,990 | £24,990 | Yes |
The Model 3 Standard is the only Tesla within touching distance. Every other version sits above the £42,000 limit, so even if a cheaper sibling qualified, those cars would still miss out. The Model Y is the clearest case: its entry price of £44,990 is £2,990 above even the £42,000 family limit. Full trim details are in our Model Y and Model 3 price guide.
Would a £990 price cut get the Model 3 the grant?
Not on its own. Price is one of several tests. A car also needs at least 100 miles of range, a three-year or 60,000-mile warranty and an eight-year or 100,000-mile battery warranty, and it must pass an environmental assessment by the Office for Zero Emission Vehicles.
That assessment is where Tesla would struggle. The government’s guidance says 70% of a car’s environmental score comes from the carbon intensity of the electricity grid where its battery is made, and 30% from where the car is assembled, using International Energy Agency country figures. The Model 3 Standard is built at Tesla’s Shanghai factory, according to Drive Tesla Canada, and Auto Express says cars from China are unlikely to qualify because coal still plays a large part in Chinese power generation.
Our sums show why it would matter to buyers if Tesla ever did get through:
EV Compared calculation: buyer price = £37,000 minus grant. A Model 3 cut to £37,000 would cost £35,500 with a Band 2 grant (£1,500 off) or £33,250 with a Band 1 grant (£3,750 off). That is £2,490 to £4,740 less than today’s £37,990, for a price cut of only £990 on Tesla’s side.
Tesla has cut the entry Model 3 before: the Standard arrived in January 2026 at £37,990, £2,000 below the previous cheapest Model 3, according to Jurni Leasing. It has not announced a further cut, and it has not said it intends to apply for the grant.
What does a grant-eligible rival cost instead?
The Kia EV4 is the closest like-for-like: a Band 1 car on the government list with a similar footprint to the Model 3. Kia’s UK price list puts the EV4 Air with the 81.4kWh battery at £36,995, or £33,245 after the £3,750 grant.
| Tesla Model 3 Standard | Kia EV4 Air 81.4kWh | |
|---|---|---|
| List price (Nov 2026) | £37,990 | £36,995 |
| Electric Car Grant | £0 | £3,750 |
| Price you pay | £37,990 | £33,245 |
| WLTP range | 332 miles | 388 miles |
EV Compared calculation: £37,990 minus £33,245 = £4,745. That is how much more a cash buyer pays for the cheapest Tesla than for the grant-backed Kia, before any dealer discounts.
That gap does not make the Kia the better car for everyone. The Model 3 has Tesla’s Supercharger network and software, and some buyers will pay the difference for that. But the grant has turned a near-even price comparison into a gap of almost £5,000, and it is worth knowing the figure before you order. Our guide to which Tesla to buy covers the case for each Tesla.
Does the missing grant matter for company car drivers?
Much less. Company car drivers pay benefit-in-kind tax on the list price, and electric cars are taxed at 4% in 2026/27.
EV Compared calculation: £37,990 × 4% × 40% = £607.84 a year, or about £51 a month for a higher-rate taxpayer in a Model 3 Standard. A £33,245 car at the same rate would cost about £44 a month, so the monthly difference is around £7.
The other tax point to watch is the expensive car supplement, which from 1 April 2026 applies to electric cars with a list price above £50,000 and adds £440 a year. Every Model 3 except the Performance sits under that line, as do the Model Y Rear-Wheel Drive and Premium Long Range RWD. The Model Y Premium Long Range AWD at £52,990 and both Performance cars are above it. Our Tesla company car tax guide runs the full figures for every version.
Can you get the grant on a used Tesla?
No. The grant applies only to new cars approved by the government, and the dealer deducts it from the price at the point of sale, so no used car of any make qualifies. Used Teslas carry no grant either way, which removes one variable when you compare them with used rivals. Our used Tesla Model 3 buying guide covers prices and what to check.
Will the grant still be around if Tesla’s prices fall?
The scheme launched in July 2025 and is funded until March 2030, after the November 2025 Budget extended it from March 2029 with an extra £1.3 billion, according to Auto Express. So there is time for Tesla’s pricing or factory sourcing to change. But on the rules as written, a lower price alone would not be enough: any Tesla would also need to pass the environmental test, and the battery’s country of origin carries the most weight.
What this means for you
If you want a Tesla, budget for the list price with no grant: £37,990 for a Model 3 Standard or £44,990 for a Model Y in November 2026. If your budget is tight and range matters more than the badge, compare a Band 1 car such as the Kia EV4 Air, which costs £4,745 less after its grant. If you are choosing through work, the grant makes little difference to your monthly tax bill, and the £50,000 supplement line matters more when picking a Tesla trim.
How we test and where our numbers come from
Range figures are official WLTP combined values taken from manufacturer UK specification pages, with real-world estimates drawn from independent comparative testing. Prices are UK list prices at the time of the latest update. Tax, grant and charging-scheme figures come from GOV.UK and HMRC publications. We re-check every guide when pricing, specification or policy changes. Last checked 1 November 2026. How we work out our own figures.
Frequently asked questions
Does the Tesla Model 3 qualify for the Electric Car Grant?
No, the Tesla Model 3 does not qualify for the Electric Car Grant. The cheapest version, the Model 3 Standard, is listed at £37,990, which is £990 above the £37,000 price cap, and the Model 3 is not on the government's list of eligible cars.
Does the Tesla Model Y qualify for the Electric Car Grant?
No, the Tesla Model Y does not qualify. The entry Model Y Rear-Wheel Drive costs £44,990, which is £7,990 above the £37,000 cap and also above the £42,000 limit that applies to dearer versions of cars that do qualify.
Why is Tesla not eligible for the UK EV grant?
Tesla is not eligible mainly because every Tesla sold new in the UK costs more than £37,000. Cars must also pass a sustainability test that scores the carbon intensity of the electricity grid where the battery is made and the car is assembled, and the Model 3 Standard is built in Shanghai, where Auto Express says cars are unlikely to qualify.
If Tesla cut the Model 3 price by £990, would it get the grant?
Not automatically. A price at or below £37,000 meets only one condition; Tesla would also have to apply to the Office for Zero Emission Vehicles and pass the environmental assessment, which decides whether a car gets £3,750, £1,500 or nothing.
Can I get the Electric Car Grant on a used Tesla?
No. The Electric Car Grant applies only to new cars that the government has approved, and the dealer deducts it at the point of sale, so no used car of any brand qualifies.
What is the cheapest Tesla in the UK?
The cheapest Tesla in the UK is the Model 3 Standard at £37,990 in November 2026, with 332 miles of WLTP range. The cheapest Model Y is the Rear-Wheel Drive at £44,990.
Sources and further reading
- gov.ukElectric Car Grant: cars eligible for a grantBand 1 maximum of £3,750 and Band 2 maximum of £1,500, the 100-mile range and warranty rules, and the eligible car list, on which no Tesla appears; Kia EV4 is listed in Band 1.
- gov.ukHow to apply for vehicle eligibility for the Electric Car GrantThe £37,000 RRP price rule including VAT, the £42,000 interpolation family limit, and the 70% battery and 30% assembly weighting of the environmental score (updated 1 April 2026).
- autoexpress.co.ukElectric Car Grant explained: ECG discounts, eligibility details and how you get itThe grant runs from July 2025 to March 2030, the Model Y does not receive it, and cars built in China are unlikely to qualify because of grid carbon intensity scoring.
- autoexpress.co.ukNew Electric Car Grant £42k price limit closes massive EV discount loopholeThe £42,000 ceiling for dearer versions of a model whose cheapest version is under £37,000, introduced in August 2025.
- evinfo.infoTesla UK Prices October 1st 2026Full UK cash prices for every Model 3 and Model Y version from 1 October 2026, from £37,990 to £61,990.
- carwow.co.ukTesla Model 3 review and pricesModel 3 RRP of £37,990 with 332 miles of range for the Standard and up to 466 miles for the Premium.
- carwow.co.ukTesla Model Y review and pricesModel Y RRP from £44,990, with 314 miles of claimed range for the entry car.
- driveteslacanada.caTesla expands lineup in Europe and UK with Model 3 and Model Y StandardThe Model 3 Standard is built at Giga Shanghai and the Model Y Standard at Giga Berlin.
- jurnileasing.co.ukNew Tesla Model 3 Standard: prices slashed on entry-level EVThe Model 3 Standard at £37,990 undercut the previous entry Model 3 by £2,000 (January 2026).
- kia.comKia EV4 pricingEV4 Air 81.4kWh at £36,995, or £33,245 after a £3,750 grant, with 388 miles of WLTP range.
EV Compared
The EV Compared editorial team tracks the UK electric vehicle market full time: new model launches, list prices, WLTP and real-world range, public charging tariffs and the tax rules that decide what an EV actually costs to run. Every guide is checked against manufacturer specifications and official GOV.UK figures, and updated whenever the numbers move.
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