Tesla Slashes U.K. Lease Fees as Sales Plummet

Tesla (NASDAQ:TSLA) shares picked up ground Monday, on word the electric car maker has sharply cut its monthly lease fee for British motorists to boost weakening demand, The Times reported on Monday, citing industry sources. The British newspaper reported that Elon Musk’s company was forced to offer discounts of up to 40% to U.K. car leasing companies, noting a lack of storage space nationwide for Tesla vehicles. It comes as the automaker scrambles to reverse a declining sales trend in the U.K. and in broader Europe. Data published by the U.K.’s Society of Motor Manufacturers and Traders (SMMT) on Aug. 5 showed Tesla’s new car sales dropped by nearly 60% to 987 units in July, down from 2,462 a year ago. Separately, data published by the European Automobile Manufacturers Association late last month found that Tesla lost market share in Europe for the sixth straight month in June. The company has been subject to reputational damage from Musk’s incendiary rhetoric and relationship with the Trump administration. It also continues to face stiff competition in the EV market, particularly from Chinese manufacturers such as BYD. Musk has warned that the automaker could face “a few rough quarters” as it faces higher tariff costs and the expiration of federal EV tax credits in the U.S. TSLA shares surged $1.15 to $331.71.