Tesla wooing leasing firms with discounts and better service after price cuts hit fleets’ values

  • Tesla is offering discounts on in-stock cars, says Reuters
  • Firm is also trying to rectify servicing and repair complaints
  • Price cuts over past year have hit bottom lines, say leasing firms

Time 8:45 am, May 21, 2024

Tesla is trying to woo leasing companies across Europe after price cuts slashed their fleets’ value.

The American company is offering unofficial discounts on in-stock new cars, and trying hard to rectify widespread servicing and repair complaints which have alienated customers in the past, according to Reuters.

The news agency says it has spoken to nine executives from major leasing and rental car companies, along with interviewing corporate fleet managers.

Price cuts on new Teslas over the past 12-plus months have seen residual values plummet, therefore hitting these firms’ bottom lines.

Tesla slashed prices to try and alleviate the effects of softening electric car demand worldwide, and the rapid rollout of Chinese models.

Richard Knubben, director general of Brussels-based Leaseurope, told Reuters: ‘Tesla is now actively telling our members: We can give you discounts and compensate you.

‘But Tesla’s residuals have dropped so fast, I’m not sure the discounts they’re offering are enough.’

In January, Car Dealer reported Tesla notched up its slowest revenue growth for more than three years during the last three months of 2023.

Despite shifting 1.2m cars in Q4 2023 and the Model Y finishing the year as the best selling EV worldwide, price cuts hit revenue and gross margins.

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.

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