From Investing.com: 2024-05-20 04:56:02

Tesla is working to mend relations with European leasing companies after retail price cuts devalued their fleets and grievances over service, repairs, and orders. These cuts were meant to boost sales in a softening global EV market facing rising Chinese competition. However, the sudden price drops hurt leasing firms that calculate leases based on expected resale values.

Efforts to appease fleet customers include unofficial discounts on in-stock cars and compensation for financial losses due to price cuts. Tesla’s falling resale values have prompted the electric vehicle giant to offer end-of-quarter discounts of up to 2,000 euros ($2,134) on Model 3 and Model Y for leasing-company purchases since mid-2023.

Tesla is facing similar issues with rental-car companies, such as Hertz in the U.S. and Sixt in Germany, which have experienced earnings declines due to lower residual values on EVs, including those of Tesla. Sixt reported a 40 million euro ($42.7 million) earnings decline in 2023 attributed to these factors.



Read more at Investing.com: Tesla offering discounts to soothe European leasing firms