Tesla Is Preparing to Launch Model 3 Leasing Business
2019-02-20 17:31 Wednesday
Tesla sent an email to employees this week to let them know they will be able to lease Model 3 within the next two weeks. However, A Tesla representative said that no decision has been made about when Model 3 leasing will be available, which means that the dates in the email are not final.
A Tesla spokesperson noted in a statement:"This is simply an internal document to ensure teams are prepared for when we eventually introduce a leasing option to customers. No decision has been made about when Model 3 leasing will be available, but it will definitely be after the dates outlined in this document."
Over the last year, the automaker has talked about using leasing to boost demand for the Model 3, but it has been reluctant of offering the financial product in order not to negatively affect their cash flow.
CEO Elon Musk said during Tesla's last earnings call: "Well, we've been reluctant to introduce the leasing on Model 3 because of how its effect our GAAP financials. So it is worth noting that demand to date is with zero leasing. So obviously, leasing is a way to improve Model 3 demand but it makes our financials look worse." Musk said that they don't want to introduce the Model 3 lease "right away" but it will be available "later this year." There's no detail on where it will be available.
It's also going to be an interesting product for Tesla employees. The introduction of the Model 3 enabled more of them to own a Tesla.
Market analysts believe that more of drivers are going to be able to drive Tesla vehicles with the introduction of Model 3 leasing. CFO Deepak Ahuja said that leasing represents only about 20% of Model S and Model X sales. Somehow, the number will definitely be higher for Model 3.