EV Loan Startup Tenet Bags $18 Million
Tenet snagged $18 million in seed funding during a round led by venture capital firms Human Capital and Giant Ventures. Additional funding was provided by Breyer Capital, Global Founders Capital, and Firstminute Capital; as well as investors Michael Tannenbaum, Gokul Rajaram, and Michael Ovitz.
The fintech startup offers buy now, pay later electric vehicle loans. The company sees an opportunity in the number of consumers who want to swap their gas-guzzler for an EV, by helping offset the high cost of going green.
$56,000 Price Tag
The astronomical cost of gas and growing desire to cut down on CO2 emissions have many people wondering if it’s time to buy an electric vehicle. Also contributing to the appeal is that EV’s have relatively low maintenance costs. The problem is their hefty price tag.
Limited supply and manufacturers’ emphasis on luxury models make these cars unaffordable for many. According to Kelley Blue Book, the average price for a new EV comes in at $56,437.
Defer Up to 25%
Tenet is positioning itself as a solution for those who want to buy an EV, but lack the upfront funds. The startup claims it can slash monthly car payments by about $200 by extending credit covering “up to 10-25% of their loan amount to the end of their term.”
While the move may be cheered by consumers who have felt shut out of the EV market, some advisors warn that these loans will eventually come due. Stated differently, the ability to pay later doesn’t necessarily translate to actual affordability. An alternative strategy, waiting for potential enhanced tax credits, could be a win for both one’s wallet and the environment.
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