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Tesla is now selling used electric cars for lower prices

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Elon Musk now sells used cars. The billionaire's electric car company, Tesla Motors, quietly launched a pre-owned vehicle program at the end of April — a new scheme that offers older versions of its Model S sedan for lower prices than new models. The used cars still come with Tesla maintenance and reliability checks, and like other high-end car makers, Musk's company gives a 4-year or 50,000-mile warranty on pre-owned vehicles.

A Tesla spokesperson told The Wall Street Journal that the used cars would be stored at a Tesla location, allowing customers to collect their car directly, or have it delivered to their home. For now, limited supplies of the used Model S electric cars mean that the new scheme is currently only available in 11 US cities, with supplies coming from display models or owners who traded their older sedans in for new all-wheel-drive models under Tesla's trade-in schemes. But the company can expect an influx of older vehicles soon, as owners who bought their first-generation Model S on a three-year lease in 2013 return the car to the manufacturer.

The used cars come with a 4-year or 50,000-mile warranty

Used cars on sale via the program are available for between $60,000 to $90,000 — generally cheaper than the same vehicles can be found from individual resellers. The cheaper used cars, which are currently available for purchase via Tesla's official site, make the barrier for electric vehicle ownership lower, a move aimed to help the manufacturer snare new customers at the same time as it disposes of older vehicles that would otherwise clutter up its parking lots and facilities. The new program also gives Tesla a nice new revenue stream: the sale of used cars traditionally yields higher profits than the sale of brand new vehicles.