>That's a 7-year contract, but given the 8 year warranty on the car
How do you account for the implied risk that Tesla doesn't exist in 8 years? That's a long ways away, and there's no guarantee they make it.
How do you account for the implied risk that Tesla doesn't exist in 8 years? That's a long ways away, and there's no guarantee they make it.
Or you could short their stock as a hedge, and buy some options to cover the upside risk.
Or you could buy the car using a title-backed no-recourse loan, pushing this risk onto the lender.
Or you could lease the car rather than buy it.