Good news, everyone. If we can manage set aside about $37,000 over the next couple of years, a Tesla Model S, a used one, will be ours. That's one of the findings in a Bloomberg Industries study on Tesla's financing, vehicle buyback and resale programs. With the typically unconventional Tesla Motors eschewing the traditional lease program and guaranteeing to buy back used Model S vehicles at a pre-set price, the company could generate $368 million in revenue from used vehicle sales in 2016, Bloomberg Industries calculates.

As Bloomberg News reports, any additional financial obligation stemming from the pre-set buyback price and challenges from a lack of a dealer network may be offset by the fact that Tesla doesn't have to work with dealerships that would take a cut of the resale. Wells Fargo and US Bancorp are backing Tesla's customer finance plans.

Tesla's predicted 2016 revenue and profit figures reflect the gains from about 10,000 vehicles being bought back from customers. Of course, a bunch of those folks may choose to hold onto their Model S EVs, dings and all, instead of selling them back to the automaker, but that speaks to the whole different subject of the Model S holding up better than expected and a customer base not willing to part with them.

So far in 2013, Tesla has had better sales than the company originally estimated, selling about 9,900 vehicles during the first six months of the year. The company doesn't publish monthly vehicle sales figures, but every quarter we get another insight into how well things are going. Anyone want to make an early guess for Q3?


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  • 16 Comments
      JP
      • 1 Year Ago
      6160
      vazzedup
      • 1 Year Ago
      So I just need to put away $50 a day for the next two years and a Model S is all mine! Shoot, guess I'm going to be disappointed again :O(
        HollywoodF1
        • 1 Year Ago
        @vazzedup
        Or, if you save for 2-years and finance at 5% for 48 months, then with approximate taxes and fees, you're looking at $20/day for six years total. And don't forget-- you're getting the cost-equivalent of about 175 mpg. Do you drive a lot?
      Grendal
      • 1 Year Ago
      This assumes that Model S owners would be willing to let their car go. So far that seems unlikely.
        raktmn
        • 1 Year Ago
        @Grendal
        Unless of course they want to move into a Model X, or maybe a new Roadster, or even go from a 60 kWh Models S into a P85, or AWD Model S, etc...
      • 1 Year Ago
      This is incorrect. According to the bloomberg story: "Used Model S sales may generate as much as $368 million in annual revenue in 2016, or an additional $40 million in annual gross profit, based on Tynan’s analysis." Revenue != gross profit.
        TMoody
        • 1 Year Ago
        The only thing worse than the quality of the "journalism" on this site is the general understanding of economics. I mean hell isn't there an editor working here? Who actually knows, you know, basic stuff??? I'm a fan of things green, but so often the lack of QC on sites like this don't help the cause.
          purrpullberra
          • 1 Year Ago
          @TMoody
          Yet they edit out A$$. Go figure. Each one of my dogs could do a better job writing based just on these false musings. But including everything else? I'm astonished. Danny, you need some help. And an editor. Editor: you need a clue and a new job.
      purrpullberra
      • 1 Year Ago
      I 'm not sure how to think things will turn out as far as lease returns. I see where there is some money to be made here by Tesla as opposed to the false claims by Tesla bears that the returns would swamp Tesla and ruin them financially. Is there going to be a high number of returns since these buyers can afford to get new cars that often? Or are the buyers hyper aware of their energy usage so they'll stick with the car for a very long time? It seems like the build quality will be high enough to justify keeping a ModelS for a decade or more. Will the used ModelS market hurt the sales of ModelEy bet is that everything will be very rosy? After all, used 5-series' don't canabilize 3-series sales so far as we know. It's so hard to know. My bet is that the future is very rosy for Tesla in any case.
      Technoir
      • 1 Year Ago
      I don't get it. Tesla promises to buy cars back at a pre set price. So far ok. To make a profit, Tesla needs to re sell these cars at a higher price.... This means I better buy directly from the seller and get a better price...so how can Tesla profit?
        purrpullberra
        • 1 Year Ago
        @Technoir
        Well, some (many?) people who can both afford a Tesla ModelS and afford to replace it 3 years later have better things to do than sell their old car on craigslist. Making more money or enjoying some free time would be 2 great reasons. It's not a secret and it's not complicated either. It's just someone making money in a situation where people would rather pay money (or lose some) in order to do other things instead. Not everyone is going to trade in their ModelS's.
          raktmn
          • 1 Year Ago
          @purrpullberra
          Right now Tesla is selling used Roadsters as Tesla Factory CPO cars with an additional warranty. http://www.teslamotors.com/preowned The value-add that Tesla will profit from includes the 241 point inspection, the reassurance that comes with a "37 month, 37,000 mile, better-than-new extended warranty", and the authority that comes with buying from Tesla instead of someone on the street. Tesla can get a better sales price than a private seller due to these and many more advantages. The Model S will get the same price advantage. Tesla is betting that their warranty and inspection costs will be low, and that the buy-back price will be too close to private resale price for most folks to bother trying to sell for themselves. Who you might prefer to buy from doesn't come into play, because this transaction happens between the owner and Tesla before you even have a chance to know somebody's "lease" is up. Tesla currently has way more factory floor space than they currently need. They have plenty of room if they need it. Seeing how fast the CPO Roadsters turn around on their website, I'm guessing they won't need much storage space for used Model S cars.
          Technoir
          • 1 Year Ago
          @purrpullberra
          Good point. 2 issues come to mind: To theoretically re-purchase each of the sold cars (it could theoretically be a rather high number, perhaps in the thousands), would mean Tesla needs lots to park said cars, and as far as I know, Tesla does not have any 'real' dealerships with parking lots at this point. Where will they be stored? How will they be re-sold, over the internet as well? Having a large inventory of used cars may cannibalize their sales for new cars. Yes any car company competes with its own used products, but then again, Tesla does not sell via dealers. It is possible that this may effect sales of new cars to a higher degree.
      Allch Chcar
      • 1 Year Ago
      Huh. That's very interesting. I might look into that in a few years.
      Naturenut99
      • 1 Year Ago
      So roughly 2016, I will have a hard decision to make. Either a new Model E or used Model S. That may be the first time I specifically choose used over new.
      GR
      • 1 Year Ago
      $37k?! Looks like I may be able to afford a Model S after all!
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