Tesla Starts Financing Program for the Model S image

Tesla adds a lease-style financing program for the Model S, aimed at increasing sales for the sedan as the company tries to take advantage of its first quarterly profit.

Tesla said that US Bancorp and Wells Fargo & Co., which are part of this program, will offer qualified customers with 10% of the vehicle’s price and a reimbursement of $7,500 through U.S. tax credit and state incentives. Tesla CEO Elon Musk said that monthly payments for those included in the program are as low as $500, including fuel savings and other costs.

“Just factoring in stuff that’s true out of pocket, you can buy the 60-kilowatt Model S for $400 or $500 a month, net cash out of pocket,” Musk said in a telephone interview. “I consider gasoline to be a tangible cost.”

The customers included in this program get a 66-month loan with a 2.95% interest rate. After thee years the owners has the possibility to resell the vehicle to Tesla, which will re-buy the car at a guaranteed residual price. Thanks to this program the Model S, which costs $69,900, will be affordable to more customers. The high-end version of the model could surpass $100,000, but they include a larger battery pack.