Could a Tesla Model 3 Lease Grow Demand? Let’s Talk about It

// TeslaCon 2018 2 Weeks Away!
  • Tickets are for live participation in the Q&A
  • 25% goes towards Electric Auto Association
  • Will be live on YouTube for free
// Model 3 Cost Calculator Updated
  • Matches Tesla’s options
  • Still includes loan amount and charging
// Leasing Could Give Tesla Model 3 A Big Boost
  • Tesla currently offers leasing on Model S and X
  • A high percentage of luxury cars are leased, not purchased.
  • Could be important for Tesla’s revenue, particularly as the tax credit phases it. [Could make it particularly important in short-term, in the gap between the tax credit phasing out until there is a $35,000 base Model 3]
  • Tesla specifically cited leasing for the Model 3 as an opportunity for growth in a press release last month: “There remain significant opportunities to grow the addressable market for Model 3 by introducing leasing, standard battery and other lower-priced variants of the car, and by starting international deliveries.”
  • From the article: Some might argue the Model 3 is not a luxury vehicle, but with its brand image and current average transaction price, Hall [leasing expert, executive vice president of] said: “there is no doubt in my mind that they are in the luxury category.”
  • Leasing can also take the potential worry out of buying a pure electric vehicle for the first time. Prospective buyers might be concerned about an EV’s suitability for their lifestyles and about the new technology of the car’s expensive battery pack, which will decline in efficacy over time.
// Elon confirms Australian Model 3 date: mid-2019
// Jaguar I-Pace doing better in Norway than Tesla Model X
  • Norway is an important market because it has high BEV/PHEV penetration. Plus their DMV is completely transparent, which gives good visibility on new vehicle trends.
  • I-Pace outside Model X (and S) in October.
  • Norway will also be seeing the Audi e-Tron by end of year
  • Possible real competition for high-end Teslas?
  • Good stats in story
// Major shareholders back Tesla
  • Ballie Gifford partner Nick Thomas told The Times of London it would back Musk if he needed more capital.
  • The firm Baillie Gifford holds a 7.72 percent stake in Tesla and said it backed CEO Elon Musk’s long-term visions for the company.
  • “If he needs more capital we would be willing to back him,” Nick Thomas, a partner at Baillie Gifford, said. The fund manager said Mr Musk was an entrepreneur of “vision and ambition, who’s working towards a social good.”
  • In addition, Oracle founder Larry Ellison revealed himself to be Tesla’s second largest stakeholder [previous week:] Ellison is one of the world’s 500 richest people.
  • In response to criticism of Elon: “This guy is landing rockets,” Ellison said. “You know, he’s landing rockets on robot drone rafts in the ocean. And you’re saying he doesn’t know what he’s doing. Well, who else is landing rockets? You ever land a rocket on a robot drone? Who are you?”
// Tesla will roll out a “summon” feature for the Tesla phone app
Autopilot Features
Navigate on Autopilot
Elon Advanced Summon Tweets:
// Another great example of Tesla’s survivability: boulder hits Model 3 and driver is still able to steer to safety
  • Large crumple zones don’t mean much when a boulder comes freakishly rolling down onto you.
  • But thanks to the all-electric design, the driver was still able to steer the car to safety, despite the massive impact that shifted the steering column