Tesla Finance is bringing $750 million in auto lease asset-backed securities (ABS) to the market, in its second deal from a new platform name after switching to a Texas-registered trust from a Delaware-registered entity.
The Tesla Lease EV Securitization 2026-A will sell notes through seven tranches of class A, B, C and D notes, according to Fitch Ratings.
Classes A1, A2 and A3 have legal final maturity dates of Sept. 20, 2027, Jan. 22, 2029, and July 20, 2029. The A-4 through D tranches all have a legal final maturity date of Sept. 20, 2030, Fitch said.
The A2 tranche includes A and B, notes with the A-2-B notes paying a floating rate based on a compounded Secured Overnight Finance Rate (SOFR).
Wells Fargo Securities is the lead underwriter on the deal.
Classes A1 through A4 benefit from credit enhancement levels of 27.00%; while classes B, C and D benefit from credit enhancement levels of 22.75%, 18.25% and 13.50%, respectively, the rating agency said.
The 29,916 leases in the pool are financing new vehicles, which have an average securitization value (SV) of $32,028, according to Fitch. The leases had a weighted average (WA) original term of 34.6 months, and have a remaining term of 25.4 months.
Fitch also notes that prime borrowers had, on a WA basis, a FICO score of 735.
Sport utility and crossover utility vehicles account for 53.3% and 46.7%, respectively.
Geographically, California, Florida and Washington account for 22.4%, 13.0% and 11.1%, respectively.
Fitch assigns F1+ to the class A1 notes; AAA to classes A2 through A4; AA to class B; A to class C and BBB to the class D notes.
