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Tesla lowers Model S lease price, adds 3-month 'happiness guarantee'

Tesla Motors is offering an enticing deal for potential buyers who might not be entirely sure whether they actually want to own a Model S for the long term. A deal through US Bank not only lowers the cost to lease the EV but also turns leasing the brand's electric sedan into a long-term rental.
Curious buyers who lease a Model S are now able to return it in the first three months with no penalties and with the remaining payments waived, something Tesla is calling the "happiness guarantee." CEO Elon Musk announced the deal on the company's blog, and he said the payments were also as much as 25 percent lower because US Bank "has a much lower cost of capital than us." Currently, a Tesla lease starts at around $800 and can be up to $1,300, with down payments around $6,500. Tesla leasing is available in 38 US states (full list below).
Of course, there is a catch for the offer. If people turn in their Model S within three months, they can't immediately lease another one. Musk doesn't say how long the wait is.

Toyota still wants Tesla's battery help, still evaluating RAV4 EV program

Tesla Motors said earlier this month that the agreement it has with Toyota to supply battery packs for the Toyota RAV4 EV SUV would be finished by the end of the year. The deal is done, but Toyota is now singing its best version of Baby, Please Don't Go. The Japanese automaker may look to extend the battery-pack agreement with California-based Tesla, Automotive News says, citing comments made by Osamu Nagata, who heads Toyota's manufacturing and engineering in North America. Nagata also complimented Tesla for its "clear business strategy." Toyota, which owns 2.5 percent of Tesla, started the RAV4 EV collaboration in 2012, in which Tesla was to make about 2,600 battery packs for the all-electric SUV. That agreement was estimated to be worth about $100 million. "We are also evaluating the RAV4 EV program and will have more to say at a later date" – Toyota "We have a good relationship with Tesla and will evaluate the feasibility of working together on future projects," Toyota said in a statement e-mailed to AutoblogGreen. "We are also evaluating the RAV4 EV program and will have more to say at a later date." And while Toyota hasn't quite met initial sales expectations – it sold about 1,600 of the RAV4 EVs through this spring – the company expects to reach 2,500 by the end of the year. And the partnership did generate about $15 million in revenue for Tesla, according to that company's first-quarter letter to shareholders. That said, Tesla is obviously focusing its battery-making efforts on its own models.

Tesla considers adding overseas production

Tesla is currently using the old General Motors/Toyota NUMMI facility in California for Model S production, and despite the brand's rapid growth, it's still not coming close to approaching the full 500,000-unit production capacity of that former facility. Still, the EV manufacturer is shopping around for both European and Asian production facilities in anticipation of bountiful increases in sales.
While we'd caution that this counting of chickens isn't the best idea, Tesla has just cause for planning ahead. According to Automotive News, Model S production should crest at 21,000 units by the end of 2013, and 40,000 units by the end of 2014. It'll soon be joined at the Fremont, California factory by the Model X SUV, along with the rumored Model E, which will occupy a volume position for the brand below the Model S. And while the old NUMMI facility might have production capacity for far more vehicles than Tesla can build, churning three separate vehicles out of the same factory might not be as economically viable as just picking up a new factory altogether.
While Musk won't come out and say it, if his logistical predictions are any indication, it's a safe bet that he sees Model E becoming the big-selling model for Tesla. Speaking to Bloomberg, he said, "We'll try to locate those close to where people are, close to where the customers are, to minimize the logistics costs of getting the car to them."