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.
“These financing options, when combined with the fuel savings of Model S, provide an attractive value proposition,” the manufacturer said in a statement.
ValueWalk's Raul Panganiban interviews Dr. Kathryn Kaminski, Chief Research Strategist at AlphaSimplex, and discuss her approach to investing and the trends she is seeing in regards to quant investing and hedge funds. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with AlphaSimplex's Read More
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-.