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Tesla's business leasing program in focus

  • Tesla Motors (TSLA +3.5%) CEO Elon Musk is extolling the speed and ease of the company's new business leasing program on Twitter.
  • Musk tweets that an application only takes 5 minutes and just a few taps to procure a Tesla EV for a business customer.
  • Robert W. Baird thinks the initiative will boost demand for the Model S and Model X. It also gives Tesla the option of introducing asset-backed securities in the future.
Comments (9)
  • scott trader
    , contributor
    Comments (4500) | Send Message
     
    This stock is a great trade it has been so volatile buying on recent pullbacks long since 140 ...it is a great rebounder...anytime a small amount of shares pays off like this one is amazing.....
    8 Apr, 01:38 PM Reply Like
  • surferbroadband
    , contributor
    Comments (938) | Send Message
     
    This is showing how Elon Musk truly cares about the customers experience when purchasing a product. It goes back to the days when he set up PayPal.

     

    Yes demand will be boosted and Tesla will sell 40k+ cars in 2014. If you disagree with me, then go ahead and short the stock. Otherwise my money stays with TSLA.
    8 Apr, 01:59 PM Reply Like
  • Hmpffff
    , contributor
    Comments (15) | Send Message
     
    So this is what the 2 Billions they lent for, a desperate attempt to increase demand
    8 Apr, 03:25 PM Reply Like
  • joeinslw@gmail.com
    , contributor
    Comments (552) | Send Message
     
    Hmpffff---You have that all wrong, the money that Tesla borrowed from the Government was $465 Million not 2 billion. Tesla paid that money back WITH INTEREST, 9 YEARS EARLY.
    The CEO Elon Musk said he doesn't want any debt, so when you think about other companies having a better value than Tesla, look to see how much they owe the Government, THEN SEE WHAT THEIR VALUE REALLY IS.
    GM is just the opposite they owe the Government 49.5 BILLION dollars, and taxpayers could loose 27 BILLION of it, and nobody is crying over those lost forever dollars.
    What bothers me is that people right here in SA are saying that TESLA has no value, isn't that a joke or what?
    8 Apr, 05:04 PM Reply Like
  • Miro Kefurt
    , contributor
    Comments (631) | Send Message
     
    OK
    So where is the application ?
    8 Apr, 03:45 PM Reply Like
  • 3WallPaul
    , contributor
    Comments (239) | Send Message
     
    I totally disagree with you surferbroadband and a quick look at a chart tells me the stock is not worth shorting. (I'm currently long in most accounts)

     

    I took a look at the lease economics only to find that TSLA rates are mediocre at best. Furthermore, in characteristic TLSA fashion the website is completely misleading as it tries to conflate the lease payment with gas savings and the tax effect from leasing. Since a business may be able to depreciate the asset ,TSLA needs to compare a depreciated, financed asset in the base case vs. the lease.

     

    In my research I read a number of comments about the lease program from both analysts and from the general public. No one mentioned the payment TSLA charges for the lease which indicates to me that the leasing program will be wildly profitable. There seems to be a tacit assumption that if TESLA is offering a lease it is fair and reasonable. IMHO, the misleading economics on the customer website will not deter the TSLA buyer nor are they taking enough RV risk to hurt the shareholders.

     

    Fact is, TSLA will be able to do something unheard of in the industry. All of the off lease cars can be upgraded with new battery packs at TSLA cost and the cars can then be sold substantially above the leasing company's book value plus the cost of the battery. TSLA is a closed eco system, a leasing sub with captive dealers is worth much more to them than Mercedes finance et al...Congrats TSLA
    8 Apr, 04:31 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (588) | Send Message
     
    TSLA update: Stop on short remains at 220.10 closing only....... Expect double bottom at 203-205 to be broken eventually to the downside. If you have no position.... stay flat and hope another piece of news jolts it higher.... then sell the opening on such an occurrence or at the very least sell a nearby call spread.....
    more later....

     

    ...
    9 Apr, 12:29 AM Reply Like
  • cparmerlee
    , contributor
    Comments (1505) | Send Message
     
    Docs wrote "Expect double bottom at 203-205 to be broken eventually to the downside"

     

    That $200 line is a tough one because there are a bunch of people who made money in the past on this stock buying on dips convinced they can keep doing this forever. So there will be a lot of buying activity at $200. But reality is quickly catching up with this stock. I'm guessing Musk has the turd pretty well polished for the March results, but it is unraveling after that. The lease thing is just another effort to try to stop the bleeding that has been ongoing on US demand. Tesla is prepared to buy the business through under-water leases rather than announce price cuts in the US. When it breaks through $200, it will probably go way past that because there will be margin calls everywhere.
    9 Apr, 09:42 AM Reply Like
  • 3WallPaul
    , contributor
    Comments (239) | Send Message
     
    They are not buying business with underwater leases --- that's the whole point. Tesla's lease payments stink.
    10 Apr, 10:02 AM Reply Like
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