I think that a full potential of the Tesla business leasing and forming Tesla Finance as a TSLA catalyst is yet to be realized.
The business lease program, although it could generate additional demand, would put a damper on the income that TM would be able to realize immediately upon signing the business lease: since it will be financed by Tesla, the deferment of income would be on both GAAP and non-GAAP basis, with the cash flow, unlike the leasing for individual program, taking a hit because this would be real lease, not a pseudo-lease. But, as we learned, the briliance of Tesla strategy covers all facets of the company, from engineering, manufacturing and ("non") marketing, to financing. As stated by the Baird analyst, in order to combat the cash flow hit, Tesla Financial is also introducing asset-backed securities, which would allow to realize the cash sooner, if not immediately on sighning the lease:
Additionally, the option of introducing asset-backed securities in the future could provide TSLA with another source of low cost capital. Securitization would also allow TSLA to receive upfront cash for its leases which could be deployed for the construction of the Gigafactory or for the production ramp of the Gen III vehicle.
TMC members with financial background would be welcome to comment, as it is an engineer speaking here, but I believe my reading is correct. I think this is unexpected by a wider market audience and is a big news.
http://www.streetinsider.com/Analys...usinesses+a+Positive,+Baird+Says/9362172.html