04:58 AM EDT, 05/20/2024 (MT Newswires) -- Tesla is seeking to placate the concerns of corporate customers and leasing companies frustrated by price cuts that have reduced fleet values and slow and expensive service, Reuters reported Monday, citing interviews with executives.

While Tesla price cuts aimed at challenging Chinese competitors boost retail sales, they reduce the resale value of the fleets owned by rental companies and corporate clients, Reuters said. Such clients make up almost half of European sales, according to the report. It is now offering those clients discounts of up to 2,000 euros on Model 3 and Model Y vehicles that are in stock, Reuters cited an unnamed executive of a leasing company as saying.

"Tesla is now actively telling our members: We can give you discounts and compensate you," Richard Knubben, director-general of Leaseurope, a lobbying and trade association representing leasing companies, told Reuters. "But Tesla's residuals have dropped so fast, I'm not sure the discounts they're offering are enough."

Reuters also reported that some fleet managers are complaining about slow and expensive Tesla repairs.

Tesla did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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