Sometimes when somebody leases a automotive, there’s a proposal to purchase it again on the finish of the lease time period. Up till just lately, Tesla put in place a coverage that prevented this. CEO Elon Musk stated the automaker wanted the lease turn-ins for a fleet of self-driving “Robotaxis.” As an alternative, the corporate went on and bought them as used automobiles at greater costs.

Reuters reported final week of Tesla’s follow, and that the automaker ended the coverage final November. It began denying the choice for lease buyouts with the Mannequin 3 in 2019, and expanded the coverage to all its automobiles in 2022. 

Reasonably than sit on stock of automobiles for “Robotaxi” fleet that, so far, hasn’t materialized, it added software-based upgrades to the automobiles and bought them for a revenue. One of many nameless sources who revealed the follow to Reuters stated it was a straightforward method to “jack up the costs” on the used market.

Reuters notes that this follow isn’t unlawful, simply deceptive to lessors, and to buyers. Tesla making it seem to be was about to deploy a fleet of self-driving automobiles imminently helped push it to develop into the world’s most dear automaker. However this coverage practically hoisted Tesla by its personal petard, as gross sales of its new automobiles and values of its used automobiles are falling within the US because of Musk’s foray into politics.

Edmunds analyst Joseph Yoon advised Reuters he suspects Tesla ended the coverage so it would not “caught holding the bag.” Although it is also price noting that Tesla debuted the Cybercab, an idea of a mannequin made completely for self driving, final October. 

As Reuters factors out, Elon Musk has promised that self-driving automobiles have been one 12 months away yearly since 2016. Whereas his guarantees have not became actuality, it is paid off handsomely for shareholders regardless.