The Tesla Model S is a pretty hot ticket if you're a well-heeled individual with a desire to drive the latest look-at-me-sedan. It's a great looking car that also happens to be a pure EV, so it's got the green cred too. This isn't an inexpensive vehicle though, as the base price is just over $70,000 and a maxed out P85+ model with all the options could top $130,000. There could soon be a way to get into a Model S for a bit less though, as Tesla Motors [NSDQ] is apparently gearing up to create a CPO program.
There seems to be a great number of Model S sedans out there currently under lease contracts. When the cars are ready to come back, Tesla has guaranteed that it will purchase them for a figure that falls somewhere between 43 and 50 percent of the original purchase price. Tesla could then use these incoming vehicles to create a CPO fleet, which would allow more folks to get into the Model S as the new sticker price should be more reasonable to the average consumer.
According to a number of experts in the industry, Tesla could generate a far greater profit margin on the cars that it's selling for a second or even third time. Couple the potential CPO vehicles with the smaller and more affordable Model 3, as well as the Model X, and the Tesla sales lineup is looking more robust than ever.
Still, there are some that think the cost of a CPO Model S could prove to be quite high. Additionally, it might make more sense for a Model S owner to test the private market instead of turning the car back into Tesla. The few tracked private sales in the market see Model S values remaining higher than the 43 - 50 percent valuation given by the automaker.
It will be an interesting venture, that's for sure. If Tesla can get more electric vehicles into the market, reaching a wider audience, it will help prove the value of Tesla's growing supercharger infrastructure. It will also help out with the stock price, and the overall profitability of the company.