Tesla Model 3 buyers in the UK’s largest European market will be forced to pay more, inasmuch as the country’s government cut subsidies on electric cars.

UK transport authorities have cut incentives for electric cars, vans and trucks from £3,000 to £2,500 ($3,491). Such a decision could turn into problems for the auto giant and undermine Tesla’s position in the UK. Tesla Model 3 prices start at £40,490 (over $56,000).

The UK government has faced pressure and is trying to plug the funding gap left by the pandemic. The authorities say that buyers of more expensive electric vehicles can afford to buy them without financial assistance. Since 2019, the number of electric cars costing less than 35 thousand pounds (about 48 thousand dollars) in the country has increased by almost 50 percent. The authorities said they will continue to offer tax breaks for electric vehicles.