(By Balachander) Tesla Motors Inc.
) is raising the Model S resale value guarantee to be the highest of any premium sedan brand made in volume.
The maker of electric vehicles also said its financing partners have agreed to provide longer term loans that reduce the monthly payment "considerably."
Those who buy the Model S electric car for personal use will now pay a monthly rate of $580 taking only gasoline savings into account, Tesla said.
When purchased via a business, assuming 70 percent of miles are for business use, the depreciation benefit further reduces the effective monthly cost of owning a Model S down to $315.
[Related -Tesla Motors Inc (TSLA): How Tesla Fares Against Upcoming Electric Cars]
Early last month, Tesla announced a new partnership with Wells Fargo (WFC) and U.S. Bancorp (USB), who have agreed to provide 10 percent down financing for purchase of a Model S.
The guarantee will extend retroactively to anyone that made use of Tesla financing created in partnership with US Bank and Wells Fargo, Tesla said on Friday.
"The Model S is rated by Motor Trend, Automobile Magazine and many others as the best car of 2013, so it should naturally therefore have the highest resale value," said CEO Elon Musk.
Shares added 2.48 percent to trade at $55.45 on Friday.