Tesla Will Probably Make More Money With Fleet Leases Of Model S

Illustration for article titled Tesla Will Probably Make More Money With Fleet Leases Of Model S

Tesla's already doing pretty well, if its share price is any judge, but because it is an American company in America and it loves it some American Capitali$m, it want to make s'more. Which is why it just announced fleet leasing for the Model S. Awwwww yeah, Tesla company vehicles.


Here's the press release from Tesla, if you really really really wanna read it, but basically it boils down to Tesla extending the same lease options on a large scale it had on a small scale:

A year ago, Tesla introduced a Resale Value Guarantee that gives customers the option to return their Model S after three years for a known value. When combined with a car loan provided by Tesla's banking partners, this program gives customers the functional equivalent of a lease – and, because they own the car, they also get the benefit of the $7,500 federal electric vehicle tax credit. Many of our customers have chosen to take advantage of the Resale Value Guarantee.

In the meantime, however, our customers in small and medium sized businesses have been asking for a leasing program for the ease and simplicity of being able to deduct the payments from their business taxes. We've been listening to those requests, and today we're happy to announce the launch of leasing for business owners.

Our leasing program is straightforward and transparent, and we've designed it to be user friendly. To begin with, business customers can easily see upfront their monthly cost of leasing while configuring their car on our website.

While customers have become accustomed to lease agreements that run as long as 10 pages, we found that we could say all that needed to be said in less than three pages – and it's written in plain language.

In keeping with the Tesla way of doing things, our customers can handle and sign their lease agreements completely electronically. Customers are able to view an electronic version of the lease agreement upfront before delivery. Even the signature process at delivery is simple: a one-button tap on the 17-inch touchscreen in their new Model S is all it takes.

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. These financing options, when combined with the fuel savings of Model S, provide an attractive value proposition compared to what's available for a gasoline-powered car.


Also, none of this has to do with Barclays analysts saying that demand for the Model S has plateaued in the US. Not at all.

Photo credit: AP

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Tom McParland

This is great news as Tesla really needs to take advantage of the very lucrative lease market for luxury cars. But it is important that everyone is aware on how Tesla's lease payments are calculated...you can read my story here.