U.S. electric vehicle maker Tesla has sharply reduced its monthly lease fees for British motorists in an effort to boost slowing demand, The Times reported on Monday, citing industry sources. According to the report, Tesla offered discounts of up to 40% to U.K. car leasing companies, citing a nationwide shortage of storage space for its vehicles.
The move comes as Tesla seeks to reverse a declining sales trend in the U.K. and across Europe. Data from the U.K.’s Society of Motor Manufacturers and Traders (SMMT) published on Aug. 5 showed that Tesla’s new car sales fell nearly 60% in July to 987 units, down from 2,462 in the same month last year.
Similarly, data from the European Automobile Manufacturers Association released late last month indicated that Tesla lost market share in Europe for the sixth consecutive month in June.
The automaker continues to face challenges, including reputational damage linked to CEO Elon Musk’s controversial statements and his association with the Trump administration. Competition in the EV market is intensifying, particularly from Chinese manufacturers such as BYD.
Musk has previously warned that Tesla could face “a few rough quarters” due to higher tariff costs and the expiration of federal EV tax credits in the U.S.
Tesla shares were down 0.77% in premarket trading at 12:50 p.m. London time (07:50 a.m. E.T.), with the stock falling more than 18% year-to-date.
