And the news just keeps getting worse for Elon Musk's Tesla. Vehicle delivers were off for Q2 — regardless of how TSLA wants to creatively spin it — the company is under investigation by both the National Highway Traffic Safety Administration (NHTSA) and the Securities and Exchange Commission (SEC), and Tesla's vehicles still have suspect reliability.
So, now what else can be added on top of this pile?
Reports now indicate that the company's buy back program that guaranteed the resale value of its vehicles ended as of July 1. Considering that electric vehicles are relatively new and that there's still a rather large question mark — and dollar sign — when it comes to how these vehicles depreciate, this is not a good sign for early Tesla adopters.
One could argue that this is the risk that early adopters take, but this just stinks to us.
One thing I've been wondering is whether or not Tesla actually informed its owners that the program was being terminated. If I had purchased a Tesla, this is something I would have liked to know in advance of the program ending.
If you're a Tesla owner, we want to hear from you! Did YOU receive notice about the program ending?
As far as I can tell, the blog did not make this known — I went back to July 2015 — and I don't recall seeing any press releases regarding the matter.
Let us know, Spies!
...Only a very small number of Model S sedans are sold through used vehicle auctions, and so far the vehicles "seem to be going for a pretty strong premium in the second hand market," said Patrick Min, an analyst with Automotive Lease Guide.
Ending the guarantee could allow Tesla to hold less money in reserve, Min added. In contrast, resale values for mass market electric vehicles such as the Nissan Leaf are depressed, Min said. A three-year-old Leaf is selling on average for about 20 per cent of its price when new, he said.
As more Model S vehicles enter the market, however, resale values could eventually fall, analysts said...
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