"EV Makers Compensate Leasing Firms as Tesla's Price Cuts Depress Car Values"
Tesla's price cuts have led to a significant drop in the value of used electric cars, prompting EV makers to compensate leasing firms for the depreciation. Leasing companies, such as Ayvens, are seeking concessions from manufacturers to protect against further erosion in the second-hand car market, as the demand for new battery-powered cars weakens. The instability in used EV pricing is impacting the corporate car market in Europe, where carmakers face fines for not meeting tightening fleet emission levels. Major corporate customers, including SAP SE and Hertz Global Holding Inc., are pulling back due to fluctuating prices, adding pressure on EV manufacturers to find buyers for used cars at decent prices.
