Hasta La Gadget!

As promised yesterday by Tesla CEO Elon Musk, the auto maker has addressed criticism and announced changes to its Model S financing plan by extending loans to reduce monthly payments, as well as offer a best value guarantee that will match other premium sedans from companies like BMW, Mercedes, Lexus, and Jaguar.

New loans will be extended by 11, going from 63 months to 72 months, in order to give buyers the ability to get lower monthly payments. The company faced recent criticism that their financing plan was a bit vague, and some of the math didn’t quite add up. For instance, the company said that the out-of-pocket cost of a Model S would be in the $500 range per month, but monthly payments would actually be around $1,200.

Furthermore, Tesla is now also guaranteeing a resale value of 50% after three years, which is up from 43% previously. Beforehand, the company agreed to match the resale value of the Mercedes S Class, but they’re now including any and all premium non-limited edition sedans, which sounds like a pretty sweet deal from the looks of it.

Musk admits that their initial financing plan “wasn’t quite right,” and he’s giving credit to the critics who called out the company on the confusing financing plans. Musk says that these people “were right,” and the company is “upping the ante by providing the best resale value guarantee in the automotive industry.”

Tesla Model S financing plan adjusted to guarantee best resale value is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

In what is now the third time in a month that Tesla CEO Elon Musk has shouted out about an upcoming announcement with Tesla Motors, he took to Twitter again today to say that the car company will be making an announcement tomorrow that will supposedly “up the ante” as well as “fix some mistakes.”

Of course, we’re left with very little details, which means we can only speculate on what Musk and company will be unveiling tomorrow. However, in a reply on Twitter, Musk elaborated slightly on what the announcement would cover, and he says that tomorrow’s announcement will be “about getting a prior announcement right.”

This means that it involves either Tesla’s new financing option or their new warranty system. However, based on these two options, tomorrow’s announcement will most likely have something to do with the company’s new financing scheme, which seemed a little off in the first place. This new financing option would allow customers to own a new Model S for just $500 per month.

We’re guessing that Musk will clarify any confusion with this new financing plan. We’re not exactly sure if he’ll change the financing option altogether, or if he’ll simply explain himself better and say, “yup, you can own a Tesla for just $500 per month.” Considering how expensive Tesla cars are, though, we’re guessing it would take years and years to pay off the car with only $500 payments.

Telsa announcement to both “up the ante” and “fix mistakes” is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

General Motors will soon lose its title as North America’s leader in rechargeable auto sales and Tesla will take its throne. Shanna Hendriks, spokeswoman for Tesla, stated that the company is expected to report a minimum of 4,750 deliveries of its Model S vehicles in North America when it releases its first quarter results on May 8th. That number will surpass the 4,421 Chevrolet Volts that GM delivered as well as the 3695 Nissan Leafs that were delivered.

Tesla started selling its Model S vehicles back in the middle of 2012, and it has plans of delivering 20,000 of its vehicles this year. So far its shipments are limited to North American consumers. Customers are able to purchase a Model S thanks to Tesla’s financing tool that will allow customers to pick up a Model S for virtually no down-payment and with monthly payments of $500 a month for 36 months. Elon Musk also promises customers that they can sell their Model S back after 36 months for the “same residual value percentage as the iconic Mercedes S Class.”

However, despite Tesla’s growth in sales last quarter, it still won’t reach the sales of GM and Nissan, who both sold 30,000 of their rechargeable vehicles last year. Tesla, being a small business, is limited to sales in only the United States and Canada, and until it can sell its Model S vehicles to other countries, it may have a tough time. According to one analyst, its small size will put it under financial pressure. John Wolkonowicz, an auto analyst in Boston, states,

“Tesla’s small size, relative to GM and Nissan, will keep the electric-car maker under financial pressure. The auto business is all about capital intensity, you have to spend money to keep improving your products and develop new ones. A small little auto company like Tesla, I just don’t think they can do it.”

Regardless, Tesla is doing well so far. The company says that in its 10-year history, it will be reporting its first-quarter profit on May 8th. The company also plans on repaying its loan from the Department of Energy 5 years in advance. Tesla’s vehicles appeal to customers not just because of their build quality, but also because of the company’s policies that assure that its customers will receive high quality service when purchasing their vehicles. Alongside the financing tool, Tesla will also provide a complete warranty program that will cover “essentially anything that happens to your vehicle”. The program will last for 8-years after you purchase your vehicle.

[via Bloomberg]

Tesla Model S surpasses GM Chevrolet Volt in sales is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Tesla CEO Elon Musk talked a bit about his goals for expanded service options in his interview with us earlier this month, and he’s today detailed some of those options that the company is ready to roll out. That includes one perk that’s been mentioned previously: the ability to get a Model S loaner to tide you over when you have to turn your car in for service. What’s more, that loaner will be a top-of-the-line Model S regardless of the car you turn in (there’s a fleet of 85 to start with, each with valet service to your location), and customers in “most markets” can also opt to get a Tesla Roadster as a loaner if they’d prefer to try out something sportier. Musk further explains that customers can even choose to keep that loaner car if they like it better, and simply pay the difference.

Beyond that, Tesla is now making annual checkups entirely optional, meaning that your warranty will still be valid for the full term even if you never take your car in. And rounding things out is what Tesla describes as an “unconditional warranty” on Model S batteries, which will let owners get a factory reconditioned unit as a replacement even in the case of user error. You can find the full details on the new options in Musk’s blog post announcing the news linked below.

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Source: Tesla

Tesla Motors currently has over 50 locations around the world, and it seems that the company wants to focus on sales in the US. However, the only state that isn’t allowing Tesla to build their own dealerships in Texas. In the Lonestar State, the law says that auto makers must go through a third party in order to sell its vehicles, but Tesla CEO Elon Musk doesn’t want it that way.

Musk is urging to lawmakers in Texas to pass legislation that would allow electric carmakers to sell directly to consumers, rather than using a franchised car dealership. Musk attended a news conference today in Austin, and said that current laws requiring cars be sold by third-party dealerships is hurting Tesla.

Texas is particularly important in this case, because it’s estimated that the state would make up between 15% to 20% of Tesla’s total sales in the US, but the chances of the law getting reversed is slim to none, as a majority of auto dealerships in Texas are opposed to the law changing, and that’s bad news for Tesla.

In the meantime, if a Texas resident wants to buy a Tesla vehicle, they have to contact a company representative in another state to arrange a purchase of the car, as well as arrange shipping the car to the Texas resident’s house, which doesn’t seem too complicated, but having physical locations in Texas could potentially increase Tesla sales in the state.

Tesla CEO Elon Musk urging lawmakers to allow direct auto sales in Texas is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.