FI showroom red and grey logo
MenuMENU
SearchSEARCH

Tesla Introduces 'New Type' of Financing Option

Tesla Motors partners with Wells Fargo and US Bank on a 'new type’ of financing for its Model S customers.

by Staff
April 4, 2013
2 min to read


PALO ALTO, Calif. — When Tesla Motors’ CEO, Elon Musk, was reviewing the different consumer financing options offered by other carmakers, he thought to himself, “There’s got to be a better way than the traditional approach.”

Musk recalled that moment on Tuesday during a conference call with media to introduce what he called a new type of consumer leasing option the California-based electric carmaker will offer through Wells Fargo and US Bank.

Ad Loading...

The option will allow Model S customers to lease the vehicle for three years. After that time, the customer can either continue to make payments on the vehicle on a 66-month financing plan or return the car as a trade-in to receive cash back. Musk said he believes the leasing option gives customers the value of ownership upfront, and he made a concrete promise that the residual value percentage on the Model S will be the same as the iconic Mercedes S Class after the 36-month period.

“I am personally standing behind that,” Musk announced, elaborating that he is "putting his money where his mouth is," because he is so confident in the product and the financing options.

Musk went on to say that it has always been his goal to make mass-market cars. He says this program is intended to increase affordability, adding that a majority of consumers who participated during the program’s “quiet test phase” qualified for the lease option.

According to Musk, finance customers on the Model S can expect to pay interest rates of less than 3 percent. Wells Fargo and US Bank will provide a 10 percent down financing on the vehicle, with Tesla estimating close to a $500 monthly payment for customers — "combined with state tax credits, savings on gasoline and depreciation benefits."

Tesla does not currently have a captive in place for its financing, with Musk noting it is difficult for his company to be competitive with the large banks offering such low interest rates.

Ad Loading...

Musk also revealed that customers should expect several more announcements in coming weeks, hinting that something revolutionary is on the horizon for the automaker.

“We will make those announcements, but not today,” Musk said.

— Stephanie Forshee

More F&I

Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Ad Loading...
Two hands holding tiles that spell YES and No on a black background
F&Iby Hannah MitchellMarch 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Ad Loading...
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →
Industryby Lauren LawrenceFebruary 11, 2026

Insurance Shopping on the Rise

A TransUnion study found that relationship-driven sales models proved to be important, as consumers who used an agent had a lower shopping intensity than those going it alone.

Read More →
Industryby Hannah MitchellFebruary 4, 2026

Auto Insurance Cost Reprieve

2025 brought consumers relief after years of rate hikes, but 2026 could bring renewed policy pain, depending on how U.S. trade policy affects prices.

Read More →
Ad Loading...
Reese Dailey from Automotive Training Academy by Assurant
F&IFebruary 4, 2026

Cash Deal Strategies

In this video, Reese Dailey of the Automotive Training Academy by Assurant reveals strategies to make cash deals profitable without relying on monthly payment bumps.

Read More →