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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (22790)	4/2/2013 7:04:59 PM
From: deeno	Read Replies (1) of 24758

Why indeed? its not nice to tease the traders. Well I can see part of it. By leasing you lose the tax credit of $7500 to 15000. That Mr. Musk gets to apply for and keep. Im guessing that the bank is factoring that purchase or the Bank indeed is buying the car and pocketing the tax credit. So if Elon keeps ownership of the car, he sells it for list price and gets to keep the tax credit. A Factoring relationship from the bank should keep his cash flow up. Now Im no CPA, but without specifics I could see it. Now the model S guarantee is a bit nebulous with some value versus and unnamed S Mercedes, but depending on usage terms of the lease that might not be a stretch. One of the biggest problems to overcome in buying an electric car is that the batteries wont last forever. Current technology costs of replacing batteries basically leave you with a brick in 7 years or so. So you get the 3 sweet years and some expectation of a residual value. If Elon believes battery technology becomes cheaper and cost effective, that might be a great bet on his part. This is how SCTY sell solar panels. They are FREE, just put them up on your roof and pay them less than you pay the electric company (for 20 years). I have no doubt the green eyeshade people have this one figured out as well. Its a bit of a ripoff if you can afford to buy panels yourself, but if you don't want to outlay any cash (or cant) AND get a guarantee output of your panels and maintenence thrown in.....well you get the point. That may pencil out well in the car business. By the time all the tax subsities go away they should have thier niche....or not. I doubt it gets used that much, a few incremental sales. a non event I think. Still, don't be teasing Wall Street folk.

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