Electric carmaker Tesla Motors, Inc. (TSLA) announced Tuesday a 'revolutionary' finance option for prospective buyers of its fast selling Model S plug-in electric luxury sedan car in partnership with Wells Fargo & Co. (WFC) and US Bancorp. The financing product provides customers with the best elements of ownership and car leasing to Model S customers.
The financing option also includes a guaranteed buyback after three years, with Tesla Founder, Chairman and CEO Elon Musk personally standing behind the guarantee to give customers absolute peace of mind about the value of the asset they are purchasing.
The lease-to-own program will see customers getting 10 percent down financing for purchase of a Model S on approved credit, with US Bank and Wells Fargo financing 90 percent of the purchase price.
The Model S prices range from $70,000 to $100,000 and the down payment could be covered entirely or more than covered by US Federal and state tax credits ranging from $7,500 to $15,000 for plug-in cars. The tax credits are normally not available when leasing.
Tesla noted that the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month while considering savings from using electricity instead of gasoline, depreciation benefits and other factors.
The move comes less than two days after the Palo Alto, California-based company announced that it expects to announce its first ever quarterly profit on the back of better-than-expected sales of the Model S plug-in luxury sedan.
Sales of its Model S vehicle exceeded 4,750 units compared to the 4,500 unit prior outlook. The company had earlier said it plans to deliver about 20,000 Model S vehicles in 2013.
Tesla Motors, which went public in June 2010, sells the Roadster electric sports car and is currently the only automobile producer marketing electric vehicles capable of operating over long distances in North America and Europe. Tesla Motors designs, manufactures and sells high-performance fully electric vehicles and advanced electric vehicle powertrain components.
TSLA closed Tuesday's regular trading session at $44.34, up $0.41 or 0.93% on a volume of 6.65 million shares. However, the stock lost $1.24 or 2.80% in after-hours trading.
by RTT Staff Writer
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