Tesla Model S Buyback Offer May Generate More Revenue
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Tesla Motors Inc.’s gamble to buy back Model S electric cars from customers using its lease-style option has potential to generate further revenue when the automaker sells used cars, according to Bloomberg Industries.
The plan gives Tesla, which sells electric sedans exclusively through its own stores, more control over used vehicle resale prices than traditional automakers, said Kevin Tynan, a Bloomberg Industries analyst. Used Model S sales may generate as much as $368 million in annual revenue in 2016, or an additional $40 million in annual gross profit, based on Tynan’s analysis.