Tesla Motors, Inc.
) is now offering a lease option to business owners for buying
Model S. The automaker has started a subsidiary, Tesla Finance,
for this purpose.
The company has tried to make the process of obtaining the
lease as simple as possible. First of all, it has kept the lease
agreement short and simple. Moreover, Tesla's website calculates
the monthly lease cost for the buyer while an order is being
placed for a car.
The best part is that the lease agreement can be signed
electronically, thus making it a very hassle-free process.
Customers simply have to tap a button on the touch screen of
their Tesla car, on delivery, to sign the agreement.
The news was appreciated by consumers, with many positive
comments posted on Tesla's website. Moreover, the stock, which
had been falling recently, gained 3.83% on Tuesday after the news
was made public.
The ease of obtaining the lease will likely make it a popular
option among business owners as they can deduct the payment from
their business taxes as well. In fact, Tesla has started the
leasing option on the request of many small and medium-sized
Apart from the leasing option, Tesla also has banking partners
who offer car loans to consumers. Moreover, the electric carmaker
also offers a Resale Value Guarantee (RVG) to car owners who opt
for financing with Tesla, which means that the company will
provide guarantee for the highest residual value of any high
volume premium sedan brand (Audi, BMW, Mercedes or Lexus) after
three years of ownership. According to the company, the
combination of car loan and RVG is similar to obtaining lease
Tesla currently carries a Zacks Rank #1 (Strong Buy). Some
other automobile stocks that are worth considering are
Tata Motors Limited
Toyota Motor Corporation
). Tata Motors and Daimler sport a Zacks Rank #1, while Toyota
holds a Zacks Rank #2 (Buy).
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