• 2013 Tesla Model S Picture

    2013 Tesla Model S Picture

    Tesla Motors on Friday announced it is guaranteeing that the 2013 Tesla Model S will have a higher resale value than that of its premium-brand competitors.
    | May 03, 2013

    | Tesla Motors

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    Just the Facts:

      Tesla Motors on Friday announced it is guaranteeing that the 2013 Tesla Model S will have a higher resale value than Audi, BMW, Mercedes-Benz, Lexus or Jaguar.
      Tesla CEO Elon Musk said the company is responding to gripes from journalists and customers that “the first version of our financing product wasn’t quite right.”
      The new Model S guarantee will extend retroactively to anyone who made use of Tesla financing, created in partnership with U.S. Bank and Wells Fargo, starting on April 2.



      PALO ALTO, California — Tesla Motors on Friday announced it is guaranteeing that the 2013 Tesla Model S will have a higher resale value in three years than Audi, BMW, Mercedes-Benz, Lexus or Jaguar.

      The resale value will be calculated from the average of all cars made by the major premium brands in the Model S’s price segment, according to Tesla.

      “You’ll get 20 percent more cash for your car in three years than our prior guarantee,” said Tesla CEO Elon Musk in a conference call with the media

      .

      Musk said the company is responding to gripes from journalists and customers that “the first version of our financing product wasn’t quite right.”

      The new Model S guarantee will extend retroactively to anyone who made use of Tesla financing, created in partnership with U.S. Bank and Wells Fargo, starting on April 2.

      “We appreciate the feedback from a number of journalists and customers that the first version of our financing product wasn’t quite right,” Musk said in a statement. “They were right, so we are fixing it, and, moreover, upping the ante by providing the best resale value guarantee in the automotive industry.”

      He added in a conference call with the media: “The best car should have the best resale value.”

      Tesla also said its financing partners have agreed to provide longer term loans that “reduce the monthly payment considerably.” It was 63 months and it has been extended to 72 months.

      “Those who buy the Model S electric car for personal use will now pay a monthly rate of $580 taking only gasoline savings into account,” the company said in a statement.

      Without taking the gasoline savings into account, the monthly rate is approximately $800, said Musk.

      Edmunds says: Tesla CEO Elon Musk says he is putting his money where his mouth is and backing the higher resale guarantee personally, he said.

      By Anita Lienert