Hyperdrive
Slumping EV Prices Force Carmakers to Repay Leasing Firms
- Leasing company Ayvens is already receiving compensation
- Tesla’s price cuts have eroded the residual value of used EVs
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Carmakers have begun compensating leasing companies for the sliding value of used electric cars as Tesla Inc.’s price cuts rip through an industry that must sell more EVs or face hefty fines.
Ayvens, the biggest multi-brand leasing firm, already has received checks in recent weeks to make up for slumping prices, according to Chief Executive Officer Tim Albertsen. Leasing companies are demanding concessions from EV makers, including agreements that manufacturers will buy back vehicles, to protect against further erosion in the $1.2 trillion second-hand car market.