Tesla Inc. (NASDAQ:TSLA) is reportedly attempting to address grievances from European leasing companies following repeated retail price cuts and slow service.
What Happened: The automaker has been offering unofficial discounts on new car purchases and working to resolve service and repair complaints, Reuters reported on Monday. This comes after fleet managers and leasing firms reported that Tesla had previously ignored these issues.
Retail price cuts were intended to boost sales amid declining global demand for electric vehicles and rising competition from Chinese EV makers like BYD and Nio. However, these cuts negatively impacted the residual values of Tesla’s fleet customers in Europe, where fleet purchases make up nearly half of auto sales.
Richard Knubben, director general of Leaseurope, said, “Tesla is now actively telling our members: We can give you discounts and compensate you.”
However, he expressed skepticism about whether these discounts would be sufficient.
Tesla is yet to respond to the queries sent by Benzinga.
Tim Albertsen, CEO of Ayvens, noted that while Tesla’s service has improved, the falling resale values have been damaging. Bart Beckers, Deputy CEO of ...