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Tesla's Model 3 Leasing Program is a Game Changer for its Ride-sharing Network

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【Summary】Tesla has launched a leasing program for Model 3 and it is quite unique

Manish Kharinta    Apr 28, 2019 12:18 PM PT
Tesla's Model 3 Leasing Program is a Game Changer for its Ride-sharing Network

It's safe to say that Tesla is not sparing any expense when it comes to keeping its offerings fresh. From adding new models to its lineup to amending prices of its portfolio, the company is making sure that it has everything to meet the needs of its customers.

Amid this excitement, the electric car manufacturer launched a leasing program for its mass-market offering, the Model 3.

The leasing program is unique and effectively states that customers will not have the option to buy the vehicle once their lease period ends. Tesla says it plans on using the Model 3's in a autonomous ride-hailing network it plans to launch after the lease period expires.

These off-lease cars will become part of the "Tesla Network", which will offer robo-taxi services. The lease period of car subscriptions purchased now, will end after 36 months.

Tesla added that sometime in the near future it will release an over-the-air software update allowing the Model 3's to become fully autonomous. Speculations suggest that the current Model 3 is already equipped with hardware and software to allow for autonomous driving.

The automaker is not wasting any time, having already fast-tracked most of its operations to meet its targets. However, reviews of Tesla's Autopilot automated driving system have sparked skepticism among the critics.

However, with Tesla growing at an exponential rate, it's possible that the company will be able to come up with a updated Autopilot system that is far superior to its current system within the next three years.

Tesla's decision to use pre-owned cars to build its ride-hailing network is unique and something that none of its rivals have explored. As one of the primary factors contributing to the success of the "Uber model", customers of Tesla's ride-hailing service will not be concerned about the ownership status of their robo-taxis.

The company will also benefit from the fact that in the three year lease period, Customers would have already paid off most of the depreciation costs. This would result in more profit for Tesla and with its ride-hailing network up and running, Tesla will only need to recover the cost of its slowly depreciating pre-owned cars.

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