Subscribe
Logo
Logo
  • Topics Icon Topics
    • AI Icon AI
    • Banking Icon Banking
    • Blockchain/DeFi Icon Blockchain/DeFi
    • Embedded Finance Icon Embedded Finance
    • Fraud/Identity Icon Fraud/Identity
    • Investing Icon Investing
    • Lending Icon Lending
    • Payments Icon Payments
    • Regulation Icon Regulation
    • Startups Icon Startups
  • Podcasts Icon Podcasts
  • Products Icon Products
    • Webinars Icon Webinars
    • White Papers Icon White Papers
  • TechWire Icon TechWire
  • Search
  • Subscribe
Reading
Lending Club Partners With Tesla And Introduces Auto Loans
ShareTweet
Home
Peer to Peer Lending
Lending Club Partners With Tesla And Introduces Auto Loans

Lending Club Partners With Tesla And Introduces Auto Loans

Peter Renton·
Peer to Peer Lending
·Apr. 1, 2014·1 min read

Tesla partnering with Lending Club

[Update: The article below is not true. There is no Lending Club partnership with Tesla. So, if you have just stumbled upon this story you should know that it was published on April 1st as an April Fools joke.]

In a joint press release today, Lending Club and Tesla have announced a brand new loan program. In an industry first Lending Club will be providing auto loans to buyers of new Tesla vehicles in this brand new program.

“Tesla has been a leading force for innovation and disruption in the auto industry,” said Lending Club CEO Renaud Laplanche in a statement today. “Lending Club is having a similar impact on financial services so it made sense for us to partner with Tesla in this new service.”

Details of this new partnership have yet to be revealed but sources tell me that these will be five year loans of up to $50,000. Interest rates will depend on the creditworthiness of the borrower but given that a Tesla Model S starts at a retail price of $69,900 these will be very much prime borrowers. So, I expect these loans will be rated A-grade and have interest rates in the mid to high single digits.

Sources have also told me that these loans will actually be secured with a lien on the vehicle. This is very significant news. Not only will this be Lending Club’s first foray into auto loans it will also mark Lending Club’s first offering of asset backed loans.

When I asked about whether these loans would be available for individual investors, not surprisingly Lending Club said they will be offered initially as whole loans to select institutional investors only. But just as with their small business loans Lending Club expects to eventually make these loans available to all investors.

My Take On This New Partnership

I have to think that these loans will be very popular with investors. Despite the high maximum loan size and relatively low interest rates, the fact that these are the first asset-backed loans offering by Lending Club means there will likely be high demand from investors.

If Lending Club was partnering with Ford or General Motors I would probably be a little more skeptical of this move. But given that these will be loans to high-end borrowers and a partnership with a successful and innovative automaker I can only see this as a successful move for both companies.

I have reached out to Elon Musk’s office at Tesla for comment but have not heard back yet as of this writing.

  • Peter Renton
    Peter Renton

    Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

    View all posts
Advertisement
Tags
April Fools DayLending ClubTesla
Related

LendingClub exceeds expectations in strong Q1 earnings

Criminal Masterminds Take a Day Off: No Fintech Fraud Today

LendingClub delivers better than expected earnings in Q4 2023

New SBA Lending Rules Are Only a Start

Popular Posts

Today:

  • Ahead of AIOutsmart Pricing Objections Before They Arise with AI Jul. 1, 2025
  • ai-work-nexusWalkMe Vets Declare War on SaaS Bloat with $10M Seed for Autonomous Agents Jun. 10, 2025
  • Paraform Founders, Jeffrey Li and John KimFunded: Paraform raises $20M to put top recruiters, not AI, in the driver’s seat Jun. 27, 2025
  • Revised-AI-InvoiceAI Faces Skepticism. Startups Say: OK, Pay When it Works Jun. 25, 2025
  • Stylizedhouse-with-EKGFintech x the One Big Beautiful Bill Jun. 26, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025
  • PayabliFunded: Payments infrastructure co Payabli lands $28M Series B to AI-ify Jun. 20, 2025
  • Current stablecoin adoptionWhy Banks (and Fintechs) Need to Embrace Stablecoins Today Jun. 12, 2025
  • TechNexus The AI IssueSteal Like an AI? Defining Fair Use & Creativity Jun. 25, 2025
  • Jon StonaTips from Airwallex x McLaren on Making the Best of a Fintech Sponsorship  Jun. 18, 2025

This month:

  • WP UmbrellaTo Bank or Not to Bank: The ILC Question Jun. 5, 2025
  • DanMurphy-FN-headshotCFPB’s Next Open Banking Battle Begins Jun. 3, 2025
  • GreenliteAI-Alex-WillGreenlite AI is on a mission to revolutionize banking compliance Jun. 10, 2025
  • Current stablecoin adoptionWhy Banks (and Fintechs) Need to Embrace Stablecoins Today Jun. 12, 2025
  • ai-work-nexusWalkMe Vets Declare War on SaaS Bloat with $10M Seed for Autonomous Agents Jun. 10, 2025
  • Ben Hemani, Founding Partner at Bison VenturesThe Risk and Reward of Betting Big on AI’s Next Frontier Jun. 4, 2025
  • Jon StonaTips from Airwallex x McLaren on Making the Best of a Fintech Sponsorship  Jun. 18, 2025
  • Ironclad State of AI ReportThe Economics of AI Trust Jun. 11, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025
  • TechNexus The AI IssueMeeker’s AI Bombshell + The VC Betting on AI Reshaping The Physical World  Jun. 4, 2025

Advertisement
  • About
  • Contact
  • Disclaimer
  • Privacy Policy
  • Terms
Subscribe
Copyright © 2025 Fintech Nexus
  • Topics
    • AI
    • Banking
    • Blockchain/DeFi
    • Embedded Finance
    • Fraud/Identity
    • Investing
    • Lending
    • Payments
    • Regulation
    • Startups
  • Podcasts
  • Products
    • Webinars
    • White Papers
  • TechWire
  • Contact Us
Start typing to see results or hit ESC to close
lis digital banking USA Lending Club UK
See all results