Wednesday, July 13, 2016

Tesla Moving Into Deep Doo-Doo

At one time, people who bought a Tesla were guaranteed a buy-back price after 3 years--by Tesla.

No more.

...the real sign that Tesla is concerned about flailing demand for its cars came later in the day, when Tesla said it had discontinued its resale value guarantee program that assured buyers that cars would retain value over time.

As Reuters adds, the discontinuation of the buyback program, as of July 1, shows the company stepping back on a pledge begun in 2013 that Tesla would buy back its cars financed through specified loan partners for a predetermined resale value after three years. The program was intended to help Tesla control its secondary market and assure buyers that cars would retain value.

This means that used Tesla values are dropping faster than the company had expected in its worst case scenario, and as a result it can no longer afford to fill the gap. With this program ending, demand for new vehicles is set to slump even more as concerns about resale prices emerge.
...

Well, then.  Maybe the market for self-immolating cars, or autopilot-unto-death cars, IS limited.  Who knew??

1 comment:

Anonymous said...

Life support on the way.

http://www.freerepublic.com/focus/f-news/3468552/posts

George Soros Bails Out Musk With $305 Mil SolarCity Investment


Posted on 9/12/2016, 1:12:21 PM

Solar panel producer SolarCity managed to raise $305 million thanks to a massive investment from an equity fund affiliated with billionaire liberal George Soros.

A private investment fund tied to Quantum Strategic Partners Ltd provided the company the bulk of the investment. Soros Fund Management LLC advised the fund.

The deal also includes an 18-year-loan with several other investment groups, the company said Monday in a press release.

Both the loan and the cash infusion came as technology entrepreneur Elon Musk attempts to merge SolarCity and electric vehicle maker Tesla Motors. Musk is the chairman of both companies and owns nearly 20 percent of each company.