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Tesla Reveals Plans to Sell its Own Used Cars

by Jacob Kleinman | October 6, 2014October 6, 2014 7:00 pm PDT

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The $70,000 price tag that currently comes with a new Tesla Model S may be too high for most people, but it looks like the company has a plan to corner the budget-conscious market as well. No, we’re not talking about the Model III, though that’s coming too. Instead it looks like Tesla is gearing up to sell pre-owned Model S vehicles right back to consumers at a significant discount.

Tesla recently confirmed the plan to AAutomotiveNews, but it’s a strategy that’s been in the making for years. When the Model S first launched back in 2013 the company guaranteed its resale value at 43 to 50 percent the original price after three years of use. Returns could actually start even sooner though if people decide to trade-in their Model S to buy the Model X SUV when it’s released next year.

Depending on how many people return their cars the company could have an inventory of three-year-old Model S models to sell starting in 2016, with that number only set to increase by 2017. Tesla also has its chain of retail stores set up across the country, where it could easily sell the pre-owned cars straight to customers. It almost seems like Tesla planned the entire thing out on purpose.

Before you get too excited at the prospect of a cheap Model S, remember it could be a while before the first pre-owned Teslas start showing up in stores. In the meantime we’re expecting some big news from the company later this week, with recent rumors pointing to an all-wheel-drive Model S and new self-driving car technology.

Automative News

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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