Plenti launches new Tesla financing product to encourage EV ownership

If pricing of Tesla vehicles is the largest impediment to purchasing one, Australians will soon have access to a new financing product launched by Plenti (ASX: PLT) specifically designed for electric vehicles and their ancillary products.

The new product aimed at making EV ownership easier and more affordable will provide Australians with an interest rate at least 0.5% lower than their lowest rate for a petrol-powered car.

“More and more Australians are recognising the clear benefits of EVs – meaning the EV market is starting to take off. Plenti’s faster, fairer EV finance and tools will help more Australians transition to an EV, making it easier than ever to research, find and purchase their first EV,” said Plenti CEO, Daniel Foggo.

“Today we introduce our innovative EV finance offering to our broker partners and to the 600,000 customers in Plenti’s ecosystem. We’re also delighted to have launched our first integrated EV finance offering as part of the online purchasing journey of an EV manufacturer, and we look forward to establishing similar partnerships in the future.”

Beyond the upfront purchase, the financing product will extend into other EV products and services including chargers, upgrades, accessories and battery insurance. These financing options will be available through Plenti’s existing direct and broker channels.

Further discounts and optionality could soon be available also, however, Plenti is deep in negotiations with a major bank for the creation of a new EV-dedicated warehouse facility utilising a debt model The Company believes will be “an Australian first”.

“The adoption of EVs is critical to Australia achieving its carbon emission reduction targets. Not only can they reduce transport emissions, but their ability to integrate with the home and energy grid mean they are poised to play a significant role in helping households reduce power bills and support grid stability,” added Foggo.

“With sales of electric vehicles doubling in the year to date since 20201 and forecast to grow strongly over the next decade, our entry into the EV market will help propel our short and longer-term growth.”

The most common Tesla car, the Model 3, retails for $59,900 which limits accessibility to most Australians but experts forecast increased supply could see electric vehicles become cheaper than petrol-powered alternatives by 2025.

For the quarter ended 30 September 2021, Plenti reported $256.4 million in loan originations which represented a 140% rise on the previous corresponding quarter and 18% increase on their June quarter.