Tesla Inc. TSLA has begun offering lease buyouts for all its vehicle models, marking a shift from its previous strategy of retaining vehicles for a robotaxi fleet.
What Happened: The lease buyout option is available for vehicles like the Cybertruck, Model S, Model 3, Model X, and Model Y, with a $350 purchase fee, excluding Iowa and Louisiana.
Previously, Tesla had stopped lease buyouts, intending to use the vehicles in a self-driving taxi service. This decision aligned with its ambitious plans for autonomous driving, which have yet to fully materialize.
The company had envisioned its cars as appreciating assets through their use as robotaxis.
Despite these plans, Tesla has faced challenges in achieving full self-driving capabilities. The introduction of the lease buyout option suggests a possible revaluation of its autonomous vehicle goals.
This move comes as Tesla aims to boost sales, having recently implemented various incentives to counter a slow sales start in 2024.
See Also: Tesla Cybercab Spotted Testing In Giga Texas Facility
Why It Matters: Tesla’s introduction of lease buyouts comes amid a series of developments in its autonomous vehicle strategy.
In April, CEO Elon Musk hinted at a unique ownership model for Tesla’s robotaxi fleet, which he described as a blend of Airbnb and Uber, with the potential name “Cybercab” reported during a first-quarter earnings call.
Later, in September, Musk asserted that traditional buses would become obsolete once Tesla’s robotaxis, equipped with full self-driving capabilities, were operational. He emphasized that these robotaxis would offer point-to-point transportation at costs comparable to bus tickets according to his statements on social media.
In October, Tesla unveiled the two-seater Cybercab, a dedicated robotaxi product, at an event in Los Angeles. The vehicle, expected to be priced under $30,000, was showcased with its self-driving capabilities.
Price Action: Tesla stock closed at $332.89 on Wednesday, down 1.6% for the day, but increased slightly by 0.5% in after-hours trading. Year to date, Tesla's stock has gained 34%, according to data from Benzinga Pro.
Analysts remain divided on the Tesla stock's prospects, with the consensus rating being "Neutral." The highest price target is $400, while the consensus price target is 232.20, implying a 30% downside.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Tesla
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