Updated from 1:54 p.m. ET to provide executive comments from conference call in the second paragraph.NEW YORK ( TheStreet) -- Tesla Motors (TSLA - Get Report) is fixing some mistakes, according to CEO Elon Musk, and is changing the way financing for the Model S works.
In addition to upping the resale price, Tesla's partners, which include US Bank (USB) and Wells Fargo (WFC), will extend the lease terms to 72 months from 63 months, to lower the cost of the monthly payment. The company noted it will cost $580 per month for a personal consumer to own the car, taking into account only gasoline savings. If a business owner purchases the car, the cost will effectively be $315 per month, assuming 70% of the miles are for business use. The effective cost of the lease is $800 per month, versus $1,100 per month when the financing plan was initially announced. Elon Musk tweeted Thursday that the company had a huge announcement to make, which was about righting some previous wrongs.
Time to up the ante (and fix some mistakes). Tesla announcement tomorrow.— Elon Musk (@elonmusk) May 2, 2013Last month, Tesla announced a new service program, building out a fleet of 100 Model S loaner cars, among other amenities for owners. Shares of Tesla were higher in Friday trading, up 0.76% at 54.52. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia