Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next
Author: DavidAnglin Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 214614  
Subject: Re: OT-Tesla Date: 4/3/2013 4:19 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
FWIW: I bought more this week.

The more important business model aspect of the recent lease announcement is that Elon Musk will PERSONALLY guarantee that any lease holder may at the end of 3 years return his or her Tesla to the company and be bought out of their lease at a price that is no lower than the relative depreciation of the same year Mercedes S class. Should TESLA fail to have the cash to fulfill this promise, billionaire Musk will do so out of his own personal funds. So if you lease this thing and then at the end of the lease want to turn it in you have a guaranteed remarkably predictable exit strategy on a zero down lease. That is a huge improvement in consumer options for this particular brand of car.

Musk is creating his own used TESLA pricing guarantee as if his name is Elon Bluebook.

That is a huge enticement to consumers who want to give this great car a whirl, but hesitate because they (by habit) are car traders and want to be able to change vehicles often, do not have a huge chunk of cashola to commit in a cashier's check at delivery, or have only some certainty TESLA will exist three years hence. The personal guarantee is a form of "I get out of my TESLA lease" insurance.

Leasing with a guaranteed buy back price opens the market to more people who love torque, ride, luxury and cache without worrying about how to try something else after they drive this car for a few years.

Tim, I get it that you don't think current battery technology can do the job that Tesla says it will do. That is okay. I trust WEB about value investing and I trust Elon about battery technology. You have no reason to agree with my choices. You have and should continue to make your own decisions.

As I said before this is not a value stock by any means, (TESLA is a start up automobile car company for goodness sakes). Automobile companies and air carriers are some of WEB's most disliked businesses.

I am taking a big long term risk on a new technology that no one else need follow. I just wanted to share the little that I had learned about this company with all of the great people who have so unsparingly shared their insights with this board.

Don't copy me... do your own research and thinking.

Sincerely,

jan

:^)
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement