SAP hits brakes on Tesla company car deal
Despite EV commitment, German giant tells Musk marque to buzz off
German software giant SAP has reportedly elected not to buy new electric cars from Tesla, the EV manufacturer led by Elon Musk.
According to German publication Handelsblatt, the company's fleet manager told it the €30 billion revenue software company decided to stop acquiring company cars from Tesla owing to delayed deliveries and price fluctuations. SAP declined to comment.
Last October, the electric car maker reduced the price of some models in the US following third-quarter growth under market expectations.
In January last year, the company reported that supply chain problems were resulting in fewer than expected deliveries.
Late on Monday, Tesla shares tanked 4 percent, resulting in a loss of nearly $24 billion in market cap. Meanwhile, investment bank Piper Sandler cut its price target on Tesla stock, saying it expected lower deliveries this year. Growth was expected to hit 7 percent, well under the annual target of 50 percent Musk set three years ago.
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SAP employs around 105,000 people in 157 countries around the world. Its leadership in enterprise application software is rivaled only by Oracle.
In 2021, the European tech leader announced that, starting in 2025, all new vehicles ordered as company cars will be emission-free. It said electric vehicles had been part of its car fleet since 2010 and that SAP incentivizes employees to switch to EVs.
Germany is home to some of the world's biggest car brands, most of which are users of SAP's software. €250 billion revenue VW Group – which includes brands Audi, Bentley, Bugatti, Cupra, Jetta, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen – uses SAP's ERP software, as does BMW.
On the other hand, Tesla built its own ERP software, which it calls Warp, as in Star Trek's warp drive. Given recent delivery projections, it might have to rename it chug-a-chug-chug. ®