Tesla to offer second hand car loan at guaranteed price

Tesla is set to offer a second-generation electric car to first-time buyers, with the company’s first-generation Model S at a guaranteed price of $80,000.

The second-gen Model S is expected to start at about $60,000, but the company says it is seeking to attract first-timers with a “pre-paid loan”.

The company’s second- and third-generation cars are expected to be sold in 2020.

Tesla will also be able to offer up to three cars a year for a guaranteed total of $1 million.

The loan will only be available to buyers in Australia, but there are no specific exclusions on the vehicle.

The loan offer comes as Tesla’s stock price has fallen sharply since its initial public offering on April 5.

Shares fell more than 40 per cent in the first two trading days after the company disclosed that its shares had fallen more than 10 per cent since its first public offering.

The company announced it would be using the proceeds of its first-mover profits from its second-quarter earnings to pay back $50 million of outstanding debt.

Its first-quarter revenue fell about 11 per cent from the previous year.

Last week, Tesla’s shares plunged more than 4 per cent to close at $49.25 a share.

“We are making a huge investment in the Model S,” Chief Executive Officer Elon Musk said in a statement on Tuesday.

It is a huge gamble and we have to make the right call.

He added that Tesla will be “paying a very, very high return on this investment”.

“We will continue to focus on driving more cars and building more demand and this is what Tesla does best,” he said.

“We have to deliver on our customers’ expectations and this will not be easy, but we are confident that this will be the right investment for our shareholders.”

The company has previously said it would make the loan to first time buyers at “no upfront cost”.

Tesla has struggled with rising costs of materials, labor and the costs of producing electric vehicles in China.

Despite these challenges, the company is forecast to increase its revenue from its Model S by 25 per cent next year.

The first-year price of the second-grade Model S was $90,000 in 2020, but it has been lowered to $60.

There is no specific guarantee on the loan.

For more Tesla news follow us on Twitter at  @techinfobase

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