Tesla (NASDAQ:TSLA) is cutting lease prices hard in the UK, letting drivers get into one of its EVs for just a little over half of what it would have cost a year ago, The Times reported.
The company, run by Elon Musk, is giving leasing firms discounts of up to 40% just to move cars off the lot. Part of the problem is simply space Tesla doesn’t have enough room to store unsold vehicles, so it’s pushing them out the door faster and cheaper.
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It comes against a tough backdrop. Tesla’s new car sales in Britain fell almost 60% in July from a year earlier, dropping to just 987 units, according to the Society of Motor Manufacturers and Traders. For investors, it’s a reminder that Tesla’s fight to balance supply, demand, and pricing is still playing out, especially in Europe.
Tesla stock is trading 10.2% higher than its 12-month price target at this point, and is also signifcantly above its GF value, which is in the $261 range.
This article first appeared on GuruFocus.