Tuesday, July 16, 2024

Tesla Dropped from Fleet Due to Price Volatility and Logistic Challenges

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SAP, a prominent software company, has opted to remove Tesla vehicles from its fleet, citing concerns over price volatility and logistical challenges, according to a fleet manager’s statement.

Steffen Krautwasser, fleet manager at SAP, expressed the company’s decision to discontinue Tesla as a company car supplier, highlighting the fluctuations in Tesla’s list prices as a significant factor impacting planning and posing heightened risks for SAP.

“The list prices fluctuate more at Tesla than at other manufacturers, which makes planning more difficult and poses a higher risk for us,” Krautwasser stated.

While Tesla’s consistent price reductions over the past two years have made electric vehicles more accessible, they have also impacted the resale value of existing vehicles, particularly affecting fleet owners such as Autonomy and Hertz, who have witnessed substantial declines in the value of their Tesla fleets.

SAP’s decision comes amid growing challenges faced by fleet managers in managing Tesla vehicles, with Krautwasser also highlighting issues arising from Tesla’s tendency to deliver vehicles ahead of schedule.

“From Tesla’s perspective, this is understandable, but it causes problems for us,” Krautwasser remarked, referring to the logistical challenges resulting from early deliveries, including storage and operational disruptions.

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