Tesla, an electric car maker in the U.S., has reduced significantly the monthly rental rate on its vehicles by British motorists in an effort to drive up its waning demand levels, according to The Times, describing industry sources as indicating the development.
According to the British newspaper, the company belonging to the Elon Musk was under pressure to supply discounts to up to 40 percent to the car leasing company in the U.K due to an absence of storage area in the country to accommodate Tesla vehicles.
The report could not be independently confirmed by CNBC, and a Tesla spokesman was not available to comment immediately.
It arrives when the automaker is desperately trying to end a downward sales curve in the U.K., as well as Europe in general.
Numbers involving the U.K.-based Society of Motor Manufacturers and Traders (SMMT) published on Aug. 5 indicated Tesla sold nearly 60% less of its new car in July 2021 than it did a year ago 987 as compared to 2,462 in July 2020.
Individually, statistics released by the European Automobile Manufacturers Association towards the end of last month revealed that Tesla continued to lose market share in Europe during June; the sixth month in a row that the company had lost it.
Musk has had incendiary rhetoric and relationship with the Trump administration that has provided the company with reputational damage. It also remains to compete intensively in the EV market especially against Chinese manufacturers like BYD.
Musk has cautioned the company to endure some rough quarters, as tariffs cost the company more and federal EV tax credits expire in the U.S.
Tesla shares had declined 0.77 per cent in premarket trading at 12:50 p.m London time (07:50 a.m E.T.). Many of the stocks have fallen over 18 per cent in the year to date, including those of the firm.
