Re:Tesla Unveils New Finance Product
by 2arrs2ells on Tuesday April 02, 2013 @05:38PM
(#5482291)
"Musk is betting that the car will be so good that people will want to keep it."
Or that Tesla can sell "certified pre-owned" models for > the cost of the buyback.
Re:Tesla Unveils New Finance Product
by notahacker on Tuesday April 02, 2013 @05:57PM
(#5482418)
True, but if owners are looking to return their Teslas en masse after 36 months the residual value will be a little less than the 43% they're apparently guaranteeing here.
It's not just a hedge against you ending up with a dud car either: you're also protected from a perfectly adequate '13 model's value being driven down by a new generation of Teslas which are drastically better (or better value). That's a worthwhile guarantee for the early-adopter of a physical product in a rapidly evolving market
Expect the most dramatic innovations from Tesla to come in 2017 and beyond then... :-)
Musk is betting that the car will be so good that people will want to keep it.
If it's true, then buyers are getting a great deal and Tesla wins with a lot of cars on the market, and in turn, a lot of leverage to get their charging stations all over the place.
If it's not true, then it all goes to hell over a year period where people are returning them and Tesla is buying them back.
Musk is basically saying "there is nothing better than a Tesla, and I am willing to bet the farm on it."