The resale value guaranteed program of Tesla Motors Inc. has now been discontinued. This program assured buyers that the value of the sold cars would be the same over time, but now, this is no longer the case.
The company lowered down the starting price of the Model X crossover, marking the second time to lower the price model this year.
Tesla has been in a series of problems, most recently is the investigation by the federal government regarding its Autopilot technology. This was after the May 7 fatal crash that happened in Florida.
The company stepped back from what it has promised in 2013, to make the company's electric vehicles to be more marketable and saleable. The predetermined resale value that it should have is now removed.
The discontinued program was aimed to help Tesla in assuring the consumers that the cars would retain the value through time. This is very helpful in controlling the secondary market.
The spokesperson from Tesla said in a statement that the cause of the discontinuity of the programs was to "keep interest rates as low as possible and offer a compelling lease and loan program to customers."
The resale value guarantee on March 31 was $1.5 billion. This was based on the latest quarterly filing of the company with the Securities and Exchange Commission
It experienced an increase of 20 percent since the second half of 2015, making the resale value liability to be on a constant increase. Last Wednesday, Tesla publicized the $9,000 mark down of the Model X crossover 60D, now priced at $74,000.
It features a 60 kWh battery. It is a lower end version of the 75D as it has less torque and a shorter speed range.
The Florida crash last month is also considered by some to be a direct factor as to why Tesla lowered down its EV's prices. The Autopilot system is under excessive scrutiny by consumers.
It is forecasted to bring down the stock value of Tesla in the market.
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