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Tesla is expensive in the UK for a variety of reasons, but the primary cause is import taxes and duties. All imported cars in the UK are subject to an Import Duty of 10% and Value Added Tax (VAT) of 20%. Additionally, Tesla vehicles imported from the US incur a fee known as the ‘luxury tax,’ which raises the total taxation to a staggering 50%. This drives up the cost of Teslas in the UK significantly, making them more expensive than in the US.
