Tesla To Nearly DOUBLE Its Lease Program? Increases Its Borrowing Capacity, BIG Time

After market close today, Tesla announced that it changed its warehouse loan agreement with Deutsche Bank to increase the amount by ~$500 million...

...Now they are increasing the amount available to $1.1 billion, according to a new SEC filing...

...Tesla says that the added borrowing capacity will be used to fund more of its own leases, which have become an increasingly important part of its sales.

The move comes as Tesla’s cash position was at an almost record $3 billion at the end of last quarter, but its quarterly capital expenditure has been increasing. Tesla has been investing heavily in expanding its manufacturing capacity in order to ramp up Model 3 production...

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SanJoseDriver - 10/21/2017 4:50:10 PM

-6 Boost

I think a lot of people will want to lease the Model 3 (including myself).

Agent00R - 10/21/2017 10:23:10 PM

0 Boost

Agreed!

This will be a majority of the buyers, much like the 3-Series, C-Class, etc. crowd.

MDarringer - 10/21/2017 5:05:39 PM

+10 Boost

Heavily subsidized leases means that the market doesn't really want the car but they will settle because the price is right.

mre30 - 10/21/2017 7:07:57 PM

+8 Boost

I wonder if Deutsche Bank provides a lease financing line to FCA/Alfa Romeo?

They are really the lender of last resort. https://www.reuters.com/article/us-deutsche-bank-capital/Deutsche-bank-tests-investor-patience-with-8-5-billion-cash-call-idUSKBN16D117

Tesla does not have its own money to fund 'cheap leases' so the fees from Deutsche Bank must be exorbitant.

Tick, tock, tick, tock.

MrEE - 10/21/2017 7:58:23 PM

-1 Boost

They don't need to fug cheap leases with the relatively low list and high projected resale. With the tax credit going to leaser this makes this option so attractive plus insurance against the early model remorse.

MDarringer - 10/21/2017 9:10:07 PM

+7 Boost

Teslas--like other EVs--don't have high resale values. Sure, Tesla props that number up if you buy another Tesla, but if you leave Tesla, the S and X are at fire-sale prices.

SanJoseDriver - 10/24/2017 11:48:49 AM

+1 Boost

Really? I have yet to see a Tesla for what I would call a fire-sale price. Residuals are solid, especially compared to other EVs.

MDarringer - 10/22/2017 3:24:38 PM

-2 Boost

Untrue: "First off leases are the worse (sic) way to finance an Automobile (sic)... period!"

These days with so much going wrong with cars a lease and dump (say two over a 6 year period) is far cheaper than a 6 year buy. At payoff, you probably want a new car, but your resale is in the toilet.

72 month leases don't exist and you know it.

HenryN - 10/23/2017 11:44:35 AM

-4 Boost

@BobM: You're certifiably the dumbest ass who has access to the internet.

Matt was talking about "72 month LEASES", and you refuted with "84 month LOANS" ???

Way to go Bob !!! you won a gold star for your "research", and an "F" for comprehension.

PUGPROUD - 10/23/2017 6:31:00 PM

+1 Boost

More leases + more borrowing + firing 400 employees = a sign of trouble.