General

Warning! Don't pay for your Tesla by electronic funds transfer before delivery!

edited May 2018 in General
TLDR: Tesla charged my account $50K for a model 3 that was never delivered. I have been trying to get my money back for 12 days, but Tesla has done nothing! I currently have no vin or delivery date. I feel betrayed by a company I used to love and mistakenly trusted. Please avoid my mistake: only pay by certified check after you receive and examine the car!

My experience with my Model 3 (attempted) purchase:

May 1, 2018: I was notified of a delivery date of May 7th at 4PM, in Manhasset NY.

May 4: I provided bank information for electronic funds transfer 72 hrs before delivery, as required for this mode of payment. I could have paid by certified check, but I thought that electronic payment would save me a trip to the bank - big mistake!

May 5: Received a phone call from local Tesla Manhasset office that my Model 3 had not arrived when expected, therefore could not be delivered on May 7. I was told it would probably arrive on May 7th and be ready for delivery May 8 or 9.

May 7: I received a phone call from Tesla, stating that the car had arrived, but it had paint damage in two areas, and had to be sent to a paint shop for repairs.

May 8: The payment for the Model 3 was debited from my bank account.

May 9th: I received a phone call from Tesla, stating that while assessing the paint damage, they had found further damage that had occurred in transit (and may have been related to the delay in transit). Therefore, they could not sell this car, and I would receive a different Model 3, at a date to be determined.

May 9th: I emailed and phoned the Tesla Manhasset office, demanding that my payment be refunded, since the car had not been delivered and there was no indication when a replacement car would be provided.

May 10 - 20th. I phoned the Manhasset office of Tesla every day or two, to ask about the status of the refund and the new Model 3 shipment. Each time, I was told that they were working on refunding the payment, but I was given no specific information about when it would occur. The Manhasset office has refused give me the contact information of their superiors. It is now 12 days since my account was debited. And as of May 20th there is no delivery date or vin for my future car.

Lesson: Pay by certified check only when you receive the car. If you give Tesla your bank account information they will charge your bank account before you receive your car and hold onto your money whether or not you receive a car. Apparently Tesla values money more than doing right by their customers.
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Comments

  • edited May 2018
    TEA score?
  • edited May 2018
    Extra points for whine and drama.
  • edited May 2018
    I understand the skepticism, but unfortunately this is happening. Maybe for some buyers this wouldn't be a dramatic experience, but this is the most I have ever paid and probably the most I will ever pay for a car in my life. It feels really crappy to be treated like this. And honestly, I should have been smarter and used a check so I could pay after I inspected the car. The point of this post is mainly to advise other Tesla buyers to use a check so this doesn't happen to them. I also think its important to keep Tesla accountable. I don't know how common it is for something like this to happen, but in my opinion it is an unacceptable practice to charge buyers bank accounts before they accept their vehicle, and then make it difficult to be repaid if the car is never delivered.
  • bpbp
    edited May 2018
    We live in Texas, where Tesla isn't able to sell cars directly.

    When we purchased our S 100D last year, we were required to pay using EFT - since the Tesla Service Centers can't be involved in the financial transaction.

    We were given two options for the purchase - we could make the EFT prior to arrival OR we could inspect the car and then step outside to make the EFT via our smartphone. Once Tesla received confirmation the EFT had been completed, we would be cleared to take possession of the car.

    Since we had an opportunity to do a quick inspection of the car prior to our official delivery appointment, we knew the car was there - and should be ready for purchase. We made the EFT transaction from the car on the way to the Service Center for the delivery appointment.

    This was a much better experience than what we went through when purchasing our 2012 S P85. At that time, the nearest Service Center was in Denver - there weren't any in Texas at that time. Tesla was going to ship our car by UPS directly to our front door, and required we pay for the car before they put the car on the truck at the factory.

    Needless to say, we were apprehensive about that - purchasing a car that we hadn't seen. And it didn't help that the transport hit a deer in west Texas - so were even more concerned about the condition of the car that we had already purchased "sight unseen".

    And, fortunately, for us, things worked out.

    The OP's concerns are understandable. Today, with most banks having the ability to do EFT's via smartphone apps, Tesla should allow for an inspection of the car - either before or during the delivery appointment - and only after that make the EFT.
  • edited November -1
    @bp,
    Wow! I didn't know UPS could handle a package that big!
  • edited May 2018
    What is Tesla's account number? I would like to set up for Fidelity account wire transfer but don't have VIN yet.
  • edited May 2018
    I have had something very similar happen to me. After I received notification that I could specify my car in April, I did so and paid the additional $2,500 deposit. Within three days I received a call from Tesla confirming my order and they told me that my pick-up date was May 4th. I explained that I was on vacation at that time and the earliest that I could pick up the car was May 17th. the employee on the phone said this would not work for Tesla and I would have to pay and take delivery of the car on May 4th or shortly there after or I would lose my deposit and my place as a reservation holder.

    After some discussion we agree that my car would be scheduled for delivery on May 18th as long as I agreed to pay for the car prior that date by EFT. I agreed to do so and paid for the car prior to May 15th. I was assigned a VIN number.

    I called the delivery center on May 17th at 2 PM to confirm that my car would be ready. The lady on the phone said the car was on site and they were looking forward to seeing me the next day at 11:00 AM, which was my scheduled appointment.

    At 6:15PM on May 17th, the delivery center called and told me not to come as the car was not ready. The lady on the phone did not know the reason and I requested to speak to the manager. The manager told me that they discovered two paint chips on the right rear quarter panel and that the car would have to be sent out to a body shop for repairs.

    On Friday, May 18th he called and informed me that the car would not be ready for delivery until May 25th. ONE WEEK TO FIX TWO PAINT CHIPS?

    I would go one step farther than not paying by ETF. They way I have been treated and the apparent lack of basic infrastructure to do minor paint repairs at the delivery center, has convinced me that Tesla is not ready to deal delivering 2,000 cars per week to the public much less 5,000 cars per week.

    They are sitting on my money, I have no car because of a fault caused by Tesla, I have not been offered a loaner car, or any other compensation for their problem. If Tesla's customer service was up to par, they would not take a week to fix two paint chips. They would have also offered some compensation for the delay they have caused, such as an additional credit at the Super Charges, or a free coolant change for the battery at it first regularly scheduled battery service.

    I currently own high end cars and have for some time. When the problem/delay is caused by the car company or the dealer, they have always offered some form of compensation, such as free oil changes, tire rotations etc.

    Tesla has a lot to learn about the automotive business service industry and how to treat customers if it is to survive.
  • edited May 2018
    Hey mark.gacka. Sorry to hear you are in a similar situation. If it is possible for you, I highly recommend going to see your car immediately to make sure it is actually there and being worked on, and also to make sure the damage is repairable. If they won't sell you the car or you are not happy with it you should demand a refund or a loaner. I hope things turn out better for you than me!
  • edited November -1
    No need for all the drama, but taking a certified check for your balance, when picking up your Tesla (or any car) is a pretty good idea. Telsa is happy with it as well. They may want you to prepay for certain circumstances, such as delaying delivery of an existing car, but not for a normal delivery.

    Biggest issue here is that you did not get your car when expected. Tesla did the right thing about pre checking out your car before delivery, and wanting to get it fixed before you picked it up. Then it got more complicated, but still they were attempting to do the right thing by you.

    It got worse when you then had neither your car nor your money. Hard for them to refund the money immediately because of all the frustrating banking regulations and rampant fraud with large wire transfers.

    Hope you get the Tesla you wanted, and this gets cleared up shortly.

    When I picked up my Tesla a year ago, at Fremont, they accepted a personal check on delivery. Guess some issues came up with them doing that came up, so now they request certified funds.
  • edited May 2018
    No need for all the drama, but taking a certified check for your balance, when picking up your Tesla (or any car) is a pretty good idea. Telsa is happy with it as well. They may want you to prepay for certain circumstances, such as delaying delivery of an existing car, but not for a normal delivery.

    Biggest issue here is that you did not get your car when expected. Tesla did the right thing about pre checking out your car before delivery, and wanting to get it fixed before you picked it up. Then it got more complicated, but still they were attempting to do the right thing by you.

    It got worse when you then had neither your car nor your money. Hard for them to refund the money immediately because of all the frustrating banking regulations and rampant fraud with large wire transfers.

    Hope you get the Tesla you wanted, and this gets cleared up shortly.

    When I picked up my Tesla a year ago, at Fremont, they accepted a personal check on delivery. Guess some issues came up with them doing that came up, so now they request certified funds.
  • edited November -1
    Sorry for duplicate post.
  • edited May 2018
    Uncle Paul:

    My order was a normal delivery. The call I received 3 days after I configured the car on line was to 1.) confirm the configuration, 2.)establish a pick- up date 3.) enter the date of manufacturing. During that phone call, the Tesla rep confirmed that a manufacturing date was not yet established and the issues regarding the the May 4th dlelivery date revolved around when Tesla had a carrier going to their Tampa delivery center. I simply ordered a car and because I requested a delivery date after May 16th, Or prior to May 3rd And did not accept the “Tesla delivery date” Tesla would not let me pay by check. This is not an unreasonable request that I made for delivery. They could deliver on May 4th, but not prior. They did schedule a delivery of May 18th, but for this “privilege “. I had to pay prior to delivery by ETF and not by check.

    They could not even make the original delivery date because the car was damaged in transit that they found 16 hours before my scheduled appointment for pick-up. The two paint chips they found (the delivery damage) is taking a week to repair.


    Tesla’s customer service has to improve. There is nothing preventing them from refunding the money in the banking regulations. There is nothing stopping them from offering me a loaner car. They have had complete payment for the car for the last two weeks. This was two weeks prior to the May 18th scheduled delivery.

    They desperately need cash, that is the problem.

    They cannot support their current deliveries because of lack of resources.
  • edited November -1
    @mark - Tesla is not so desperate when they have 2+ billion cash on hand. Sorry for the issues you've had, but you don't need to make up stuff to get your point across. It also seems a bit confusing as you're asking for a refund and a delivery date (if this is wrong, I apologize). I expect it is best to state exactly what you want Tesla to do - refund with cancellation OR a new delivery. With any company, when you demand conflicting solutions, it can really slow results.
  • edited May 2018
    Why do people blame Tesla when they are without a car? People shouldn't get rid of their current car until they have the replacement car in their possession.
  • edited May 2018
    TeslaTap.com:

    I only want my car. I believe one week to to fix two paint chips is excessive. This is an indication that Tesla has not invested in the infrastructure to handle the delivery of the Model 3.

    In regards to the delivery dates, I gave Tesla an extra 14 days to deliver the car. For this privelage I had to pay early.
    I was going out of the country on the date they wanted to schedule,May 4th. I told them I could take delivery on May 3rd, but they could not make that date.

    Tesla is having a greater problem with deliveries and service with increase in volume caused by the Model 3.

    By year end, it is forecasted that Tesla will have to raise an additional $10,000,000,000 in capital.
  • edited May 2018
    TeslaTap.com:

    I only want my car. I believe one week to to fix two paint chips is excessive. This is an indication that Tesla has not invested in the infrastructure to handle the delivery of the Model 3.

    In regards to the delivery dates, I gave Tesla an extra 14 days to deliver the car. For this privelage I had to pay early.
    I was going out of the country on the date they wanted to schedule,May 4th. I told them I could take delivery on May 3rd, but they could not make that date.

    Tesla is having a greater problem with deliveries and service with increase in volume caused by the Model 3.

    By year end, it is forecasted that Tesla will have to raise an additional $10,000,000,000 in capital.
  • edited May 2018
    Lilbean

    I confirmed my pick-up appointment with the customer service center at 2:00 PM with on May 17 th. The appointment was for May 18 th @ 11:00 am. My car was given to the new owner on May 17th at 4 pm. At 6:15 PM. The service center called and told me my car would not be ready on May 18th.

    Who is to blame?
  • edited May 2018
    Lilbean

    Why does Tesla have $62,000 of my money, missed the delivery date and I do not even have a loaner car from Tesla. Do you think they will pay me interest on the money I have given them without receiving the product?
  • edited May 2018
    It is a little ridiculous that we put $1000 down on a car and waited 2 years for it and then when they decide to deliver it they have a take it or leave it attitude. However, I had none of these experiences, in fact this was BY FAR my best car buying experience of my life. How can I even compare this to going to a dealership and haggling for hours and then still wondering if I actually got a good deal. Sleazy salesmen, even at the places that say they don’t negotiate make the process a nightmare. I kept my last car for many years just because I couldn’t stomach the idea of having to go through the buying process again.
    I loved buying my Tesla. Here is the price, here is what we need for a deposit. Here is what you pay, or if you want a loan here is your rate. I wanted to use a credit card to buy the car but they wouldn’t allow it, something about title and lenders, whatever, I just wanted the miles.
    My car was delayed about 3 days from the original date, the truck was late. But, I’ll take that over a traditional dealership any day.
    If we didn’t have ridiculous union laws making companies pay ridiculous salaries to uneducated people who push a button all day long Tesla could operate a different model and have bigger dealerships, but in AZ they have nice showrooms. The laws making direct sales of automobiles are so not capitalistic, they are basically communism. The unions, now that we have a federal minimum wage are unamerican and pathetic. If you want to make more money than minimum wage go to college like I did. I don’t rely on a union to pay me 6 figures to do a job a trained monkey could do.
    What was I originally saying? I forgot.
  • edited May 2018
    Mark.gacka,

    Do you really think they need cash?!? Ha! That’s funny, they have billions in cash, and people all over the world lined up to give them more money faster than they can take it.

    So, you say you had an appointment for delivery on the 18th, and they gave your car to it’s owner on the 17th (I assumed you were the owner, but maybe not), so they called you and said it would not be ready for delivery on the 18th. Is that because you, the owner, got the car on the 17th, or did they give your car to someone else? Here is your text that I am asking about:

    I confirmed my pick-up appointment with the customer service center at 2:00 PM with on May 17 th. The appointment was for May 18 th @ 11:00 am. My car was given to the new owner on May 17th at 4 pm. At 6:15 PM. The service center called and told me my car would not be ready on May 18th.
  • edited May 2018
    Mark.gacka,

    Also, you are going to judge Tesla as a whole by the actions of one service center, on ONE car delivery? Tesla designs, produces, sells and services these cars. The actions or inaction you experienced was likely the result of one or two employees of the company, not the company themselves. If you were buying a Chevy you better believe they would not delay a delivery to make sure your car was perfect, not like Tesla is doing. Maybe they aren’t happy with shitty touch up paint, maybe they need to actually re-paint a body panel, and that is why it is taking time. Because they want your car to be perfect. I can tell you, that’s how I felt when I got mine, it was perfect, beautiful and flawless. I still feel excitement every time I step into my car. They are a great company, if more car companies acted like Tesla it would be a GREAT thing for consumers.

    Stop bitching, it sucks your new expensive car is late, but damage during shipping is not something they had direct control of, and they want to make sure you don’t get a not-perfect product when you take delivery. When you get the car you’ll forget all about the delay, and be greatful they fixed it the right way the first time.
  • edited May 2018
    "By year end, it is forecasted that Tesla will have to raise an additional $10,000,000,000 in capital."

    By whom, exactly? Outlandish statements like this flag you as a bozo, and kill your credibility here.
  • edited May 2018
    Adam.white.32

    They did not give my car away. They found the car had damage at 6:00 Pm on May 17th. They stated that they did not have the facilities on sight to repair the damage. The damage noted was two minor paint chips in the right rear quarter panel. They needed one week to make the repairs as the car had to be sent out to a body shop. They do not make any paint repairs at the delivery center located in Tampa Fl. Originally they stated everything was fine and 4 hours later they stated the car was damaged in transit. It seems to me that Company did not know what it doing.

    You can look at the past and current balance sheet of Tesla. In addition you can take Tesla’s projection of car sales for the rest of the year and calculate the cash needs of the company. This simple calculation gives you the answer for the addition capital requirements of the Company. Tesla’s own filing with the SEC also backs up the future capital raise the company will require. (The SEC filings are public information and can be obtained on line.). Also the large investment banks also state the company needs a capital raise by year end.

    Management of the company no longer discloses how many cancellations they are receiving or how many reservation holders are converting their reservations to orders.

    Sorry, but all of this, plus my personal experience, leads me to believe that Tesla is currently having serious difficulties.

    In regards to the service, Tesla is attempting in increase the number of delivery centers rapidly, but cannot increase them sufficiently because of qualified manpower. If they meet their production schedules, service will suffer significantly in the future because the cannot add the service capacity fast enough. If they don’t meet their production schedules the cash/capital issue gets worse.
  • edited May 2018
    Johnyi:

    Please look at the financial analysts reports on Tesla, by JP Morgan, Chase, Goldman Sachs, Morgan Stanley, Citi, Key Bank etc. They all agree with a capital raise by year end will be needed between 8,000,000,000 and 12,000,000,000.

    Do your own research and you see I am correct.
  • edited May 2018
    Johnyi:

    You can also Google “Will Tesla need to raise additional capital by year end.” This will give you a wide variety of professional opinions and forecasts. Many of which I mentioned above. They will need to raise capital through 2020.
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