US electric car manufacturer Tesla Motors has expanded its leasing offering with the creation of a subsidiary, Tesla Finance, aimed at providing car finance options for SMEs.
The move comes a year after the creation of a leasing programme through which the company gave purchasers of its Model S vehicles the option of selling them back to Tesla or purchasing them outright for their remaining value, at the end of a pre-determined term.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Specifically set up to offer a leasing option for corporate clients, the new subsidiary will offer loans from partner banks, as well as the existing programme’s three-year resale-value guarantee.
A spokesperson for Tesla said: "Our customers in small and medium sized businesses have been asking for a leasing program for the ease and simplicity of being able to deduct the payments from their business taxes.
"We’ve been listening to those requests, and today we’re happy to announce the launch of leasing for business owners."
US SMEs will be able to calculate the leasing costs directly on Tesla’s website while configuring their battery-powered vehicle, a feature which Tesla claims makes the programme "straightforward and transparent".
"These financing options, when combined with the fuel savings of Model S, provide an attractive value proposition compared to what’s available for a gasoline-powered car," the spokesperson added.
Tesla is reportedly looking to increase production by 56% in 2014, entering the Chinese market and continuing its brand expansion in Europe.
In an email to Bloomberg, Craig Irwin, an analyst with Wedbush Securities, a California-based financial services and investment firm, said the move into car finance would be a natural next step for the company.
"A large portion of luxury vehicles in the US are leased, and it’s not surprising to see Tesla start with business leasing," he added.
