German software giant to stop using Tesla for company cars

German business software giant SAP – one of the world’s largest software companies by revenue and market capitalisation – has recently announced it will stop using Tesla vehicles for its employee fleet.

According to the German publication, Handelsblatt – SAP fleet manager Steffen Krautwasser said Tesla’s pricing volatility makes it harder to maintain consistency with future plans.

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

Additionally, Mr Krautwasser mentioned Tesla’s inconsistent delivery schedule – often arriving earlier than expected – poses a significant logistics issue for the company – with the business approximately employing over 110,000 people in 160 countries globally.

“From Tesla’s perspective, this makes sense. But it causes problems for us,” he told the German news outlet.

Following SAP’s plans to move its company fleet away from Tesla – the US electric carmaker’s stock reportedly fell 4 per cent to $US180.46, hitting its lowest point in the market since May 2023 – as reported by Reuters.

According to the report, if the stock losses continue, Tesla “could lose nearly $24 billion in market capitalisation”.

This news comes as other businesses – such as car rental company Hertz, which is offloading 20,000 of its Tesla electric vehicles in its fleet – continue to cut ties with the US electric car giant due to a higher depreciation reselling value for used Tesla models.