Photo: Tesla
Even though Tesla hasn’t delivered the entry-level Model 3 that Elon Musk promised it would start at $35,000, there’s a silver lining on the horizon. More to the point, Tesla prepares to roll out Model 3 leasing options in the United States of America.
According to an e-mail sent to employees, the automaker’s workforce will be able to lease the Model 3 within the next two weeks. Electrek reports the internal document is meant to “ensure teams are prepared for when Tesla introduces a leasing option to customers.”
A spokesman told the motoring publication “no decision has been made about when Model 3 leasing will be available" but did mention that leasing will be available “after the dates outlined in this document.” Whenever Tesla rolls out the program, there’s no denying demand for the Model 3 in the United States of America will shoot up.
The downside to leasing the Model 3 is that cash flow will be affected. During the earnings call for the fourth quarter of 2018, Elon Musk said that “leasing is a way to improve demand but it makes our financials look worse.”
Electrek expects Tesla to roll out the leasing options after the end of this quarter. Compared to the Model 3, the Model S and Model X are available to lease for years now. Chief financial officer Deepak Ahuja explained that leasing makes up 20 percent of S and X sales in the U. S. of A.
The imminent introduction of the Model 3 lease further confirms the entry-level model priced at $35,000 is on the horizon, an addition that would drive demand further up. On the other hand, Tesla doesn’t make as much profit on the $35,000 variant as opposed to the Mid Range or Performance.
Since its introduction, Tesla manufactured more than 200,000 examples of the Model 3 despite the lack of the $35,000 configuration with rear-wheel drive and the smallest battery on offer. At the time of writing, the most affordable Model 3 is the Mid Range with rear-wheel drive at $42,900 before savings. Including gas savings and the federal tax credit, the price drops to $34,850.
A spokesman told the motoring publication “no decision has been made about when Model 3 leasing will be available" but did mention that leasing will be available “after the dates outlined in this document.” Whenever Tesla rolls out the program, there’s no denying demand for the Model 3 in the United States of America will shoot up.
The downside to leasing the Model 3 is that cash flow will be affected. During the earnings call for the fourth quarter of 2018, Elon Musk said that “leasing is a way to improve demand but it makes our financials look worse.”
Electrek expects Tesla to roll out the leasing options after the end of this quarter. Compared to the Model 3, the Model S and Model X are available to lease for years now. Chief financial officer Deepak Ahuja explained that leasing makes up 20 percent of S and X sales in the U. S. of A.
The imminent introduction of the Model 3 lease further confirms the entry-level model priced at $35,000 is on the horizon, an addition that would drive demand further up. On the other hand, Tesla doesn’t make as much profit on the $35,000 variant as opposed to the Mid Range or Performance.
Since its introduction, Tesla manufactured more than 200,000 examples of the Model 3 despite the lack of the $35,000 configuration with rear-wheel drive and the smallest battery on offer. At the time of writing, the most affordable Model 3 is the Mid Range with rear-wheel drive at $42,900 before savings. Including gas savings and the federal tax credit, the price drops to $34,850.
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