Every revolution comes with unwanted side effects. Tesla wants to be a driving force of more sustainable mobility and wants to become the largest car manufacturer in the world. This ambition is only achievable with aggressive pricing. Hence, the recent price cuts are in line with the long-communicated strategy. They make every new Tesla more affordable. However, the Financial Times has reported that in the UK, the second-hand prices of Tesla cars are forecasted to fall. These declines in residual values are taking place in the UK, Europe, and US second-hand car markets. It is evident that residual values have declined across the board due to the supply of new vehicle production having recovered from the pandemic induced supply shocks for auto-manufacturers. It is worth stating that there has been a broad market decline of residual values in 2023 for all brands, however Tesla cars have been depreciating in a greater magnitude that other rival electric brands due to the price cuts.

Tesla cars become even more affordable. The Tesla price cuts could lead to stimulating consumer demand for Tesla vehicles which should increase Tesla’s turnover volume.

Secondly, our customers decide to buy a car with new drivetrain technology to contribute to the overall energy change. Customers are not motivated to trade cars quickly, but enjoy state-of-the-art technology. Very often leasing enables them to make that switch faster than a cash purchase.

This will ultimately benefit LeaseTeq as a preferred leasing partner for Tesla in Switzerland and Austria.