The electric-vehicle maker Tesla Motors Inc. said it will offer a guarantee of the second hand price for vehicles with its first-generation Model S sedan.
The company said Thursday it will guarantee the price of a Model S with the first-gen sedan from $24,999 to $32,999, which is $1,000 cheaper than a similarly priced sedan equipped with a larger battery pack.
“We have always done our utmost to make our products affordable for everyone,” Tesla Chief Executive Officer Elon Musk wrote in a blog post.
“We can now take that commitment even further.”
Tesla said it plans to offer the second-hand price guarantee in limited quantities at Tesla stores and at Tesla’s Tesla Powerpack factory in Nevada, which it opened in 2015.
Musk has said that Tesla will soon be producing its second-generation sedan with a 200-mile range.
Tesla and Ford Motor Co. have said they plan to offer similar guarantees.
Ford is also offering a second-half guarantee of $1 million, which will give buyers the option of either paying full price or paying less than $1.75 million.
The second-quarter guarantee is expected to be in place from April to October.
Tesla said Thursday that it has more than 1,300 cars and that it expects the full-year 2018 delivery of about 5,600 vehicles.
The Tesla Guaranteed Price Hinton is the first time the company has offered a guaranteed price for its cars.
In a statement, Musk said the guarantee was a “great first step.”
The announcement comes amid mounting competition for the first carmaker to offer guaranteed second hand prices.
Ford Motor Inc. recently announced that it was offering a $1 price guarantee for its secondhand cars.
Volkswagen Group NV, one of the world’s largest carmakers, has also announced it will allow consumers to pay full price on its vehicles, a decision that has sparked anger among car buyers.
Tesla, which has struggled to keep pace with the growing number of electric-and-hybrid cars on the road, also is under pressure from automakers to offer guarantees on its cars, which can add tens of thousands of dollars to the price.
The carmaker has also come under fire from electric-auto advocates, who say the guarantee only encourages manufacturers to sell less affordable cars.
“Tesla will offer $1 guaranteed price guarantee only on the secondhand Model S and Model X vehicles,” Jeff Bezos, founder and CEO of Amazon.com Inc., wrote in an email.
“They will have to sell millions of vehicles to keep up with the demand.”