Tesla Forges New Partnership To Boost EV Affordability With Credit Union Financing - Tesla (NASDAQ:TSLA)

In a move aimed at increasing affordability for buyers, Tesla Inc TSLA has entered into a partnership with lending technology firm Origence. The collaboration seeks to provide credit union financing to prospective Tesla customers in the U.S. and reduce their monthly payments.

What Happened: The new initiative is aimed at facilitating access to credit union financing at the point of purchase, thereby granting EV shoppers easier access to competitive rates and extended financing terms. Prospective buyers can make their vehicle purchases either via the website or mobile app.

When a buyer chooses to finance their Tesla vehicle via the Origence unit FI Connect, they will essentially be matched with a credit union. Credit unions are not-for-profit, member-owned financial institutions, that prioritize competitive rates as they are focused on their members. There are over 5000 local credit unions across the U.S.

“With FI Connect and Tesla coming together, EV buyers can receive affordable financing through credit unions,” CEO of Origence Tony Boutelle said.

Why It Matters: During the company’s third-quarter earnings call in October, Tesla CEO Elon Musk expressed worries about high-interest rates making its vehicles more unaffordable to buyers.

"I’m worried about the high-interest rate environment that we’re in. I just can’t emphasize this enough that the vast majority of people buying a car is about the monthly payment," Musk then said. Despite the company cutting prices on its vehicles since the onset of the year, the monthly payments customers pay for the cars are not really changing owing to the high rates, Musk added.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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