Tesla Slashes Monthly Lease Price By Nearly Half In The UK As Global Sales Woe Continue For Elon Musk's EV Giant: Report

Tesla Inc. TSLA is reportedly offering discounts to leasing companies in the UK as Elon Musk's EV giant continues to grapple with sales woes globally.

Up To 40% Discounts To Leasing Companies Amid Storage Space Woes

Tesla is offering up to 40% off to leasing companies, which could translate to lower monthly payments for customers, to move units out of the lots and into people's homes, The Times reported on Sunday.

The discounts come as the automaker faces stiff competition from Chinese rivals as well as a shortage of storage space for their vehicles, anonymous industry sources cited in the report suggest.

Following the discounts, a Tesla Model 3 could be had for monthly payments as low as £252 ($341), a sharp decline from the previous £600 to £700 ($813 to $948) in monthly payments.

No Changes To Retail Prices

The company has not slashed the sticker prices of its vehicles and is also offering zero-interest financing, with experts suggesting that the move could help Tesla move inventory.

"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," Fraser Brown, an expert cited in the report, said.

Tesla's Sales Continue To Dip, Norway Defies Trend

The news comes at a time when the company's sales figures in the UK, as well as globally, illustrate a sharp decline in Musk's popularity across multiple markets. Sales in the UK fell by over 60% in July, with the company delivering just 987 units in the country.

Tesla sales also declined in markets like France, Denmark and Sweden, which recorded double-digit declines in the countries with sales falling by over 88% in Sweden.

Interestingly, Sweden's fellow Scandinavian neighbor, Norway, bucked the downward sales trend as Tesla sales surged 24% in the country, which could provide a boost to Tesla.

Tesla scores well on Momentum, Growth, and Quality metrics, but offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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