Tesla Demands Extra $2,500 from reservation holders: No Delivery Date Promised

Tesla now wants an extra $2,500 from depositors who plunked down $1,000 to "reserve" a car.

The Tesla joke continues: Tesla Asks Model 3 Reservation Holders for Another $2,500 to Order Their Cars.

  • Would-be Model 3 owners already put down a $1,000 refundable deposit to “reserve” one of Tesla’s Model 3s. Those reservation holders must pay an additional $2,500 to turn their reservations into an order, at which point the original $1,000 deposit goes toward the overall payment for the car. Buyers can cancel their orders within three days for a full refund, the company confirmed, but after that their money is Tesla’s for good.
  • Buyers who confirm won't immediately get a specific delivery date, but Tesla's email says delivery could happen "in as soon as 2-4 months." [As soon as 2-4 months or as long as?]
  • The company has not yet manufactured a base-model version of the Model 3, which it has promised to sell for $35,000. Instead, it's produced versions with premium features, such as longer range, a higher top speed and all-wheel drive, which cost between $49,000 and $72,000. [Want a base mode? Good luck with that.]
  • Goldman Sachs is skeptical that Tesla can make good on all of its ambitions near term. This week, the firm issued a note reiterating a sell rating on Tesla's stock, recapping the company's history of missed production goals and noting that investors are beginning to focus not on short-term bursts of vehicle production, but on: sustainable, high volume manufacturing; vehicle profit margins; and whether or not Tesla can get customers to buy its highest-priced cars.

Tax Consequences

Sane Thing

The sane thing to do is cancel the order and demand your money back. That was the first of thousands.

Mike "Mish" Shedlock

Comments (13)
No. 1-13
ZZR600
ZZR600

Be interesting to see if all the money is paid back or if deposits are 'lost'

Zardoz
Zardoz

I asked for mine back about 2 months ago, and got my credit in 3 days.

Brother
Brother

The Fisker is looking up to be better bet lol...keeping a deposit is complete fraud.

Brian1
Brian1

Here's one that was just delivered. Dash looks cheap, compartments don't close, front license plate holder affixed with double-sided tape, etc. Piece of junk:

Snow_Dog
Snow_Dog

Yes, but you get a free “not a flame thrower” tossed into the deal....

Snow_Dog
Snow_Dog

“The sane thing to do is cancel the order and demand your money back. ”

The insane thing to do is allow Musk to bore tunnels beneath Los Angeles. Let’s hope that sanity prevails.

Maximus_Minimus
Maximus_Minimus

Tesla looked like a clever scheme to eliminate suckers from the gene pool.

ZZR600
ZZR600

Some companies talk the talk, others walk the walk

Nissan LEAF Drives the Electrification Charge

Nissan is celebrating the 100,000th delivery of the LEAF car this month in Europe, in a move hailed as a victory for electric mobility. Globally, over 320,000 Nissan LEAF have been sold, making it the most sold EV in the world.

MorrisWR
MorrisWR

The sane thing to do was not give Musk your money in the first place.

Advancingtime
Advancingtime

The day Musk is handed his just dessert could not come fast enough for the growing number of investors and Musk watchers that have become disenchanted by his erratic and sometimes capricious ways. Not only is the company burning through cash but it is having difficulty producing cars in the numbers and quality they promised.

This has resulted in Tesla becoming one of the world’s most-shorted stocks. Unfortunately, for the shorts, shares are up almost 30% in the past month mainly as a result of Musk's antics and toying with those of little faith. More about this in the article below.

kram
kram

Elon probably knows that if he goes to the public via Wall Street, the game will be up and his goose is cooked, as the market will not only not give him money, they will short his stock out of existence.

Therefore, while putting a brave face (bravado?) about how his naysayers will be shocked in the next few days, etc, etc, he is probably desperately seeking funds from his paying prospects.

The other thing is, if there are cancellations, he may simply not have the money to pay. So, this trick to weed out fence-sitters and use money from the rest to pay the quitters who want a refund. Of the 450000 customers who ponied up $1000 apiece, the breakeven point is 321500 quitting with musk not being out of pocket.

The novelty appeal of Tesla is now over with mainstream auto companies coming up with equal or better EVs. Nissan Leaf is the largest selling car and there will be better from others.

Elon missed his chance and might be considered in future as the DeLorean of his time (or something similar).

Sechel
Sechel

either they have way too much demand or they're desperate for cash. i'm betting the latter

glider
glider

The M3 is rolling off the lines to chagrin of the Tesla-Musk-Short-Hate-Cult. Well guess what, potential consumers that put up a refundable $1000 for an in demand M3, and are now asked to pony up 5% of the total cost. For most it is a reasonable way to separate those serious from those not. Don't like it?... then take your refund! BFD !!! As if this is new to the world of marketing!!