Tesla Offers Discounts to European Rental Firms Amid Resale Value Concerns

Tesla Offers Discounts to European Rental Firms Amid Resale Value Concerns

Tesla's significant price reductions for its electric vehicles (EVs) have pleased individual buyers but upset corporate clients like leasing and rental companies, who depend on stable resale values. Hertz in the U.S. faced notable financial challenges when Tesla's price cuts devalued its fleet.

To avoid similar issues in Europe, where leasing companies make up half of Tesla's sales, the company is offering significant "unofficial discounts" to corporate clients. These discounts aim to retain business despite aggressive price cuts meant to compete with Chinese automakers like BYD and European companies such as Volkswagen.

Tesla is addressing complaints from corporate customers about poor service and high repair costs. This move is crucial to maintaining relationships and preventing a shift to Chinese EV manufacturers, whose competitively priced vehicles have already drawn attention from European leasing firms.

Earlier this year, global leasing firm Ayvens received compensation from car manufacturers to offset falling fleet values, highlighting the need for protection against future price drops. This trend shows leasing companies demanding guarantees from EV makers to safeguard their margins.

Tesla faces the challenge of balancing price cuts to attract retail buyers while not alienating leasing customers, hoping that increasing EV demand and a slowdown in low-cost Chinese vehicles will stabilize the market.



EUROPE TESLA NEWS FROM https://finance.yahoo.com/news/tesla-rushing-angry-european-rental-144641129.html

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