Why is a Tesla lease car so popular with company car drivers?
Thanks to its visionary leader, Elon Musk, and early entry into the market, many drivers see Tesla as the first true modern electric car.
Find out what’s driving this deep interest…
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All this Tesla interest adds up to big demand…
The Tesla Model Y was the UK’s biggest selling electric car in 2023, with the Tesla Model 3 in 4th place. While in 2023, the Model Y retained its place as the world’s best-selling model – only the second time ever for an all-electric car.
As other major manufacturers innovate their own electric vehicles, what is it that makes Tesla the one to beat? And why is Tesla leaving traditional hybrid, petrol and diesel company cars far behind?
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Leading the charge for electric vehicles since 2003
Tesla is the world’s first ground-up EV company. It was incorporated as Tesla Motors in July 2003, its name inspired by inventor and electrical engineer, Nikola Tesla. In 2004, Elon Musk became the company’s largest shareholder and in 2008 Tesla announced its mission to accelerate the move to sustainable energy and transport, through electric vehicles and solar power.
Fast forward 15 years and in 2023, Tesla is one of the planet’s largest companies and the world’s most valuable automaker. Even in the face of increased competition, Tesla leads the battery electric market with over 50% share. And in the second quarter of 2023, the company announced record new car deliveries. They are at the forefront of electric vehicle technology. With their innovative designs, long-range batteries and powerful performance, Tesla appeals to drivers who want to drive electric while still enjoying aesthetic desirability and exhilarating driving experiences.
Starting with one model, the Roadster in 2008, the company has grown its range to offer four models today – the Tesla Model X, Model S, Model 3 and Model Y.
X
- 326 miles range
- 0-60 in 2.5 seconds
- 1,020 hp
- Left-hand drive SUV
S
- 359 miles range
- 0-60 in 1.99 seconds
- 200 mph top speed
- 1,020 hp
3
- 390 miles range
- 0-60 in 4.2 seconds
- All-wheel drive dual motor
Y
- 331 miles range
- 2,100 litres cargo
- All-wheel drive dual motor
Supercharging the benefits of choosing Tesla
Tesla recognised the importance of charging very early on and has invested heavily in creating an extensive Supercharger Network. That’s why in 2023, they owned and operated the largest global, rapid charging network in the world with over 50,000 public superchargers and more than 1,000 in the UK alone in over 100 different locations.
Superchargers enable Tesla drivers to simply plug-in and top-up their cars conveniently and quickly. And this can add up to 172 miles of range in just 15 minutes. Through the smart app they can navigate to the nearest site, see plug availability and charge status – meaning drivers are free to grab a coffee and do something far more interesting.
Tesla drivers who use the Supercharger network pay for their charging sessions on a pay-as-you-go basis and only pay for the power they use when topping up their battery. In fact, the average price per kilowatt hour (kWh) for a Supercharger in the UK is 67p (2023), but Tesla owners who subscribe to the £10.99 per month membership are charged around 53p per kWh.
Up until 2022, Tesla drivers had exclusive use of the Supercharger network. But now, thanks to Tesla opening up part of their network to all electric car owners, they have to share. While the company has stated that queue times are continually monitored, it’s natural that Tesla drivers now have to wait longer to top-up their cars.
Reading Tesla owner forums, it’s clear that while some feel it negatively affects the ownership experience, many more agree with the company that driving EV ownership as a whole can only be good for the industry and the planet.
Doing the business for company car drivers
One of the main reasons why Tesla cars are so popular with company drivers is how simple they make the transition to battery electric. There is no compromise on style, performance, sustainability and ease of ownership.
The Tesla brand is synonymous with innovation, luxury and exclusivity. It appeals to a wide range of company car drivers, broadening its appeal. From those who prioritise the environment to tech enthusiasts.
Tesla vehicles are known for delivering a great driving experiences. Models like the Model S Plaid and Model 3 Performance have broken records and challenged the notion that electric cars are slow or lack excitement.
And what about Tesla battery size?
Bigger batteries mean longer range capabilities. All models in the range can now travel over 300 miles on a full charge, making them perfect for company car drivers who very often travel long distances between meetings and appreciate fewer charging stops. Whilst battery degradation, or rather the loss in capacity and range over time and increased mileage, is a big concern for many drivers. Tesla has recently explained that its batteries only lose around 12% of capability after 200,000 miles.
Leaving a staggering 88% of battery life for the next few hundreds of thousands of miles – and ensuring Tesla battery replacement cost isn’t something drivers need to worry about.
Reliability is a big win. Tesla’s reputation for quality and reliability has boosted its popularity, and according to data from various sources including Consumer Reports, Tesla vehicles consistently rank among the highest in terms of owner satisfaction and reliability. Helping to build a loyal customer base that is willing to pay a premium for Tesla’s products.
Of course, for many drivers, their vehicles are also their workplaces. Tesla’s spacious, comfortable interiors feature advanced on-board technology. For example, its Autopilot driver assistance system with automatic parking and touchscreen display with in-built YouTube and Spotify. While their over-the-air software updates provide continuous improvement, boosting the ownership experience.
While cost is of course a major consideration (discussed in more detail below) aesthetics or driveway appeal is significant. Tesla cars have their own unmistakable wow factor.
Why choosing Tesla can pay dividends
Many company car drivers and their organisations choose electric for both its environmental benefits and tax incentives. Tesla vehicles are fully electric, emitting zero tailpipe emissions which mean they are exempt from Vehicle Excise Duty, Ultra Low Emission Zone charges and Clean Air Zone fees.
Drivers can also take advantage of 2% Benefit in Kind (BiK) rates that are fixed until 2024/25 and compare very favourably versus traditional petrol or diesel BiK rates between 20-37%. Since electricity is not classed as a road fuel, Tesla cars have no fuel benefit charge. That means employees are exempt from paying Benefit in Kind on electricity provided by their employer to charge an electric company car.
First Year Allowance is also claimable for up to 100% of the cost of qualifying low emission and electric cars. By choosing a Tesla car, businesses can claim a 100% year one deduction for the cost of the vehicle.
Over the last few years, Salary Sacrifice has grown in popularity. Meaning company car drivers can save up to 40% on the price of a new Tesla, simply by deducting their lease fees from their gross salary, before tax and NI contributions are applied. Businesses themselves may also benefit from reduced National Insurance contribution payments from the scheme.
While the upfront cost of a Tesla is generally higher than its competitors, they offer significant costs savings over time, including lower running, servicing and maintenance costs. A significant benefit for businesses with large fleets in particular. The company’s investment in battery technology and its introduction of the Gigafactory network has resulted in increased range, improved performance, greater longevity and reduced costs.
Lease a Tesla with ease
Tesla’s commitment to sustainability, advanced features and technology, impressive performance and range, as well as its long-term cost-effectiveness, make it the perfect car for company car drivers.
By choosing a Tesla, company car drivers can align their transportation choices with their organisations’ sustainability goals, enjoy state-of-the-art technology and convenience, experience thrilling performance, and save costs in the long run.
Powered by LV= General Insurance, we work with specialists CBVC to offer a wide range of the latest electric cars, with over 100 models from more than 30 leading manufacturers – including Tesla. With many available from stock within just 30 days. We partner with Indra to provide convenient home chargers to energise every journey.
And we provide bespoke insurance through Allianz, our digital sister insurance company.
Want to find out more about leasing a tesla including stock offers or a business lease? Start by clicking here to see our range.
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