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Elon Musk Guarantees Buyback Value of the Model S from His Own Pocket

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Elon Musk and the Flagship Tesla Model S
Elon Musk and the Flagship Tesla Model S

The Tesla Model S is possibly the most technologically advanced vehicle on the road today, and Elon Musk is putting his money where his mouth is, offering both special financing and a guaranteed buyback price.

Elon Musk has no delusions that the Tesla Model S is an affordable vehicle and doesn’t plan on dropping the price anytime soon. Future models could be more affordable and mass-produced, but for now, Tesla Motors is partnering with a couple of banks to make getting into the Tesla Model S a little easier.

The new financing deal will allow new owners to opt out of paying the 10% down payment. Instead, the banks will front the client’s own federal tax credit and any state credits which could total up to $12,500, depending on which state you live in. After that, the client makes the usual payments.

This isn’t the end of the story though. Elon Musk is so confident in the enduring value of the Tesla Model S that he is personally fronting the money for a buyback program. The benchmark vehicle he used for comparison is the Mercedes-Benz S550 luxury sedan, which currently retains 43% of its original value after three years. That being said, if a Tesla Model S owner wants to sell his car back to Tesla Motors after three years, Elon Musk is guaranteeing the buyback price, even if Tesla Motors goes under.

No one can ever say for sure, but there doesn’t appear to be any problems with Tesla Motors going forward. Stock prices are at an all-time high, the company’s been profitable for the second quarter running, and according to Tesla Motors CEO Elon Musk, “We don’t have a demand problem, and we expect to sell about as many cars as we can officially make.”

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