The $1 billion Tesla carmaker is aiming for a milestone of $1 trillion in sales by 2021, and its new electric-car company has announced a new deal with a carmaker that promises to guarantee a second hand price on a car that could be worth $1.6 million to $2 million.
The deal, the first between a car maker and a car manufacturer in nearly four decades, comes just a few weeks after Tesla and its rival, the $1-billion-selling Chinese manufacturer, BYD, struck a deal in February to acquire both companies.
The agreement was struck in part to help Tesla ramp up production of the Model 3 electric car and in part as part of a broader deal between BYD and Tesla to expand their manufacturing capability in China.
In a statement, Tesla said that it would work with BYD to “deliver a second-hand purchase price of the second-generation Model 3 at a minimum of $2,500.”
The company also said that its plan to pay for the guarantee would include an “automated cash guarantee.”
Tesla also said in the statement that it has “agreed to the second hand purchase price guarantee agreement with BYG, with additional terms to be announced at a later date.”BYD announced last year that it had entered into a second deal with Tesla to help increase production of its new Model 3 sedan, which is due out in 2019.
The deal with BYP aims to help the company meet its 2020 target of 50,000 vehicles produced and to help it reach its goal of 200,000 cars on a new road trip in 2019 and 2020.
In February, BYP CEO Wang Jianlin said that Tesla had reached a “gold standard” for electric cars.