Tesla reportedly offering discounts to European fleet customers

Tesla is offering discounts to European fleet customers to cope with the decline in the resale value of its EVs in the face of price cuts.

The report mentions that Tesla’s fleet customer firms are facing issues in reselling models due to the continued change in pricing, reports Reuters.

Tesla has been slashing prices on its vehicles all over the globe including Europe to increase sales. This remains uncertain amid the slowing demand in the EV market and the rise of Chinese rivals.

Fleet buyers are businesses that purchase large numbers of vehicles for companies, governments, and rental car operators. These fleet buyers hold major control over the European car market as fleet purchases account for nearly half of all car sales in the region.

However, an important factor for these fleet buyers is the project resale value at the end of the lease term. A good resale value enables the fleet customer to do the following:

• Lease extensions
• Wholesale auctions
• Direct sales to dealerships or used car retailers

The report mentioned that sudden changes in pricing are affecting the resale value and costing money to leasing firms. Richard Knubben, Director of Leaseeurope, a leasing and rental group said that Tesla is actively reaching the group member. It is offering discounts and compensations for these resale value fluctuations.

In mid-2023, Tesla gave end-of-quarter discounts on its Model 3 and Model Y by up to 2,000 euros ($2,134) for leasing companies based on the stock situation. The declining resale value has become a breaking point for fleet buyers in Europe. A few are reportedly switching from Tesla to other options.

The discomfort in fleet buyers is also related to previous after-sale services. However, Tesla has cut through major issues in services to provide a better fleet experience.