Posted April 5, 2013 by Jessica Wright in Business

Elon Musk is personally going to guarantee buyback values of Tesla

Elon Musk is personally going to guarantee buyback values of Tesla
Elon Musk is personally going to guarantee buyback values of Tesla

Multi-millionaire Elon Musk stated today that he is personally guaranteeing the buyback value for Tesla’s electric vehicles under the new payment arrangement. He said he is going to make sure this is going to happen even if he will have to end up declaring bankruptcy. Musk also unveiled the brand new financing strategy the company will implement to make his company’s vehicle more affordable. This comes after the company conducted a research and found out that the main reason why consumers don’t purchase their vehicles is because of their expensive price. In a surprise, Musk also stated that he is personally going to pay the difference in percentages between the old and new cost from his own pockets.

“Even if our company isn’t able to implement this, I will make sure it will happen personally. I will do everything I can to implement this, even if this involves me paying money from my own pockets,” Musk stated to reporters. If this actually happens, he will end up paying about $10 billion from his own money. However, Musk also stated that is so positive that the new resale value is going to work that he won’t have to pay anything.

Tesla is currently working with several banks such as Wells Fargo for the new lease arrangement. The new arrangement is essential because expensive batteries and innovative technology found in the vehicles have placed them out of the reach of numerous buyers. This week, the company announced that they aren’t going to accept any orders for their Sedan, a car that costs about $80,000. Customers will also have to pay $900 to get the car delivered to them. This is considered to be the most costly car they have.

Under the new deal, customers will also not have to pay the 10% forward payment as this is going to be covered by the banks that the company has a leasing agreement with. However, customers will have to make a payment every month and this will be around $600 depending on the type and cost of the car they purchased. One of the most interesting things about this deal is that Tesla is going to accept the cars after two years is customers don’t want it anymore. They will also guarantee customers the original price, something that most car owners suffer from as the original price of any vehicle usually decreases after a couple of years.

Jessica Wright

Jessica Wright graduate of Northwestern University getting both Bachelor’s and Master’s Degrees in Broadcast Journalism. Jessica has been Senior Correspondent focusing on the impact of political decisions and office holders. Jessica is our seasoned investigative, political and community-oriented reporter and columnist whose work has won awards locally, statewide and nationally. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club.