Tesla Inc. is offering significant discounts to leasing companies in the UK as the company continues to face sales challenges globally. These discounts can lead to lower monthly payments for customers, making Tesla vehicles more affordable.
Discounts and Storage Space Woes
The company is providing up to 40% off to leasing companies to move units out of storage and into customers’ hands. This move is largely due to stiff competition from Chinese rivals and a shortage of storage space for their vehicles. As a result, a Tesla Model 3 could be leased for monthly payments as low as £252 ($341), a significant decline from the previous £600 to £700 ($813 to $948) in monthly payments.
No Changes to Retail Prices
Despite the discounts, Tesla has not reduced the sticker prices of its vehicles. The company is also offering zero-interest financing, which experts believe could help Tesla clear its inventory. According to an industry expert, “The most expensive way to find a home for these cars is by cutting the retail price. The cheapest way is to cut the monthly payments.”
Sales Continues to Dip
The news comes at a time when Tesla’s sales figures in the UK and globally are experiencing a sharp decline. Sales in the UK fell by over 60% in July, with the company delivering just 987 units in the country. Similarly, Tesla sales declined in markets like France, Denmark, and Sweden, with sales falling by over 88% in Sweden.
Norway Defies Trend
Interestingly, Norway has bucked the downward sales trend, with Tesla sales surging 24% in the country. This could provide a much-needed boost to the company.
Conclusion
Tesla’s decision to cut lease prices in the UK is a strategic move to clear inventory and stay competitive in a challenging market. While the company faces significant sales struggles globally, the surge in sales in Norway could be a positive sign for the future. As the electric vehicle market continues to evolve, companies like Tesla must adapt to changing consumer demands and market trends to remain competitive.