‘If you don’t like your Tesla, return it’ – This seems to be the latest anthem amongst prospective car buyers in US and its origins lie in the head office of this innovative automobile manufacturer located at Palo Alto in California. The crux is the leasing package offered by Tesla Motors Inc (NASDAQ:TSLA) wherein customers who take Model S on a lease are eligible for a trial period lasting three months after which they can return the car if they do not like it.
As described by the company’s CEO Elon Musk –
“Leasing now also comes with the Tesla happiness guarantee. If you don’t like our car for any reason in the first three months, you can just return it and your remaining lease obligation is waived. The only catch is that you can’t then immediately lease another Model S. Upgrading early is no problem if you want to do that, but there is a pass-through fee to cover the new vs used value difference.”
Discussing it on CNBC were Phil LeBeau and Michael Yoshikami, a CNBC contributor and while they dwelled on how effective the scheme will be in attracting customers to Tesla Motors Inc (NASDAQ:TSLA), it was also pointed out that the stock plummeted yesterday. Phil LeBeau explained that it was owing to a rumor pertaining to their sales figures but he was equally quick in observing that such rumors usually had a short-term impact on the stock and that it managed to bounce back every time.
As per the calculations projected by Tesla Motors Inc (NASDAQ:TSLA), this arrangement with US Bank would mean that there will be a 25% reduction in the cost of the vehicle courtesy of the lower cost of capital. Presently, the current lease value on a monthly basis starts at $800 and can escalate up to $1300 for the premium model.
Unlike other car manufacturers in US, Tesla Motors Inc (NASDAQ:TSLA) is the only one of its kind that sells its product directly to the customers through ‘Design Studio’, the official website of the company that caters for customization option too.