Tesla has been keeping one card close to its chest when it comes to creating additional demand for Model 3: leasing options.
Now Electrek has learned that Tesla is preparing to launch its leasing products for Model 3 as outlined in an email sent to employees.
Sources familiar with the matter told Electrek that Tesla sent an email to employees this week to let them know they will be able to lease Model 3 within the next two weeks.
We contacted Tesla about the email sent to employees about the new Model 3 leasing program and the company confirmed that they are preparing it, but they say that the dates in the email are not final.
A Tesla spokesperson told Electrek in a statement:
“This is simply an internal document to ensure teams are prepared for when we eventually introduce a leasing option to customers. No decision has been made about when Model 3 leasing will be available, but it will definitely be after the dates outlined in this document.”
Tesla Lease Cash Flow
Over the last year, the automaker has talked about using leasing to boost demand for the Model 3, but it has been reluctant of offering the financial product during the production ramp in order not to negatively affect their cash flow.
CEO Elon Musk said during Tesla’s last earnings call:
“Well, we’ve been reluctant to introduce the leasing on Model 3 because of how its effect our GAAP financials. So it is worth noting that demand to date is with zero leasing. So obviously, leasing is a way to improve [Model 3] demand but it makes our financials look worse.”
Musk said that they don’t want to introduce the Model 3 lease “right away” but it will be available “later this year.”
The timing in the email appeared quite clear that the leasing program would launch in the next few weeks, but Tesla insists that it will actually launch in the later date despite what’s in the document.
It makes sense since Tesla wouldn’t want to have the leases affect their financials in the current quarter.
I think it’s going to be a big demand driver for Tesla.
There’s no detail on where it will be available, but I expect that it’s only going to be in the US at first.
It’s also going to be an interesting product for Tesla employees. The introduction of the Model 3 enabled more of them to own a Tesla, but it is still a somewhat expensive vehicle.
I think more of them are going to be able to drive Tesla vehicles with the introduction of Model 3 leasing and it’s why they are also giving priority to them.
Interestingly, CFO Deepak Ahuja said that leasing represents only about 20% of Model S and Model X sales.
Somehow, I believe the number will be higher for Model 3.
What do you think? Let us know in the comment section below.