Tesla’s financing program grew lease outstandings by 33% in the second quarter compared with the prior-year period, the company reported during its earnings call last week.
Operating lease vehicles grew to $2.83 billion in the quarter, compared with $2.12 billion the prior year. By comparison, GM Financial — which Tesla is often compared to because of their competing stock valuations — held $32 billion in lease outstandings at the end of 2016, according to Big Wheels Auto Fiance 2017.
Tesla doesn’t offer captive retail loan contracts but leases can be done almost entirely online through the company’s website.
Additionally, the company generated more than $272 million in leasing revenue during the second quarter, an 80% increase over 2Q16. However, this increase needs to be taken within the context of the cost of revenues, which is the total cost incurred to obtain a sale and the cost of the goods or services sold. The gross profit for sales and leases for 2Q was just over $666 million, which still represents a 142% increase year over year. Tesla does not break out originations figures.
Currently, Tesla is preparing for its ramp up of Model 3 production where reservations peaked at 518,000 and have fallen to 455,000 net reservations, a loss of 63,000 reservations. Tesla has also lowered the entry-level price of the Model X SUV, from $82,500 to $79,500. The $3,000 price drop is the result of improved margins for the electric crossover, which the company achieved thanks to “efficiencies” achieved in the manufacturing process, according to a published report.
