A group of activists criticizing Elon Musk and Tesla’s policies hold a protest outside a Tesla dealership in London’s Park Royal district, on April 12, 2025 in United Kingdom.
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U.S. electric vehicle maker Tesla 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.
CNBC could not independently verify the report, and a Tesla spokesperson was not immediately available to comment.
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.
Shares of Tesla were 0.77% lower in premarket trading at 12:50 p.m. London time (07:50 a.m. E.T.). The firm’s stock price is down more than 18% in the year to date.