Tesla Follows The Money, Launches Financing Arm
After setting up a retail lease program, Tesla is now moving closer towards a full-fledged captive financing arm, by launching a financing unit for corporate leases.
According to a statement released by Tesla,
The Tesla business lease is available through Tesla Finance, a subsidiary we’ve set up especially to offer this new product to business customers. The lease program completes a suite of products, including the Resale Value Guarantee and loans from our banking partners, that covers a comprehensive range of financing needs for Model S customers.
While Tesla touts the simplicity of the lease, which contains a simple agreement that can be completed electronically, the real news is the establishment of Tesla Finance. The business lease program could very well be a stepping stone to a full-blown captive financing arm for Tesla, which would enable them to expand sales of their future products to a wider customer base, as well as providing a new revenue channel for their auto manufacturing business.
More by Derek Kreindler
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Could this be a way for Tesla to circumvent franchise laws? It's leased from Tesla Motor Corp, is maintained by Tesla, serviced by Tesla, and will be returned to Tesla when the lease is up. Want to purchase your Tesla when your lease is up? Your service advisor can advise which state this can take place.
Elon Musk was one of the founders of paypal- that's where his billions come from. My guess is that he knows what he's doing.
I've casually shopped a Tesla for a biz lease . As of January of this year, they were guaranteeing 50% residual after 3 yrs, but no leases in traditional sense. MB must be above 50 on the new S for 3 years.
http://www.youtube.com/watch?v=V4ALbVQwRT8&feature=share&list=UUaelOgVXLe-1a3PUpob3upQ