Tesla Motors Inc (TSLA) Shows Off New Business Leasing Program

Tesla Motors Inc (TSLA) Shows Off New Business Leasing Program
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Tesla Motors Inc (NASDAQ:TSLA) has introduced a new business leasing program for small and medium-size business customers. The move, aimed at pushing its offerings further among the corporate world, is in addition to the present financing options available for its electric cars.

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“These financing options, when combined with the fuel savings of Model S, provide an attractive value proposition,” the manufacturer said in a statement.

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New subsidiary for business customers

On Tuesday, the company stated that small and medium-size businesses have been demanding a leasing program for a while now. Such programs would allow businesses to adjust the payments to come out with the business taxes.

Tesla Motors Inc (NASDAQ:TSLA) business lease, the new leasing program, will be offered by Tesla Finance, which was specifically formed to make available new products to business customers.

Previously, Tesla Motors Inc (NASDAQ:TSLA) has launched quite a few financing plans to make it easier for customers to buy or lease its Model S cars, which are priced between $69,900 and $93,400 excluding federal or state credits. Also, the electronic vehicle maker has in place a resale plan and bank loans to help prospective buyers.

Tesla stock expected to gain

In April, last year, Tesla Motors Inc (NASDAQ:TSLA) introduced a lease financing program for customers. The company said that it partnered with U.S. Bancorp and Wells Fargo to structure leases in a way that allows the customer to adjust the value of the federal and state electric-car tax credits against the down payment. The tax credits range from $7,500 to $15,000. At that time, the company claimed that the financing deal is a combination of five-year loan and a three-year lease. Also, a customer with good credit could drive the Tesla Model S sedan, which costs about $80,000, by paying 10% down and around $1,199 a month for up to 63 months.

Analysts at The Street expect Tesla Motors Inc (NASDAQ:TSLA) shares to rise today. In the pre-market trading the shares were up 1.11% to $209.59 following the announcement of a leasing program for business customers. According to the company, prospective customers can view and sign the lease agreements available on its website. Analysts have a Hold rating on Tesla with a ratings score of C-.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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