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Who to Escalate to Regarding Sales Discrepancy?

Who to Escalate to Regarding Sales Discrepancy?

My sister custom ordered a Model X with my referral code. While waiting for production, Tesla contacted them stating they had an identical Model X in production that would be available sooner and offering a $2000 discount. They agreed upon taking the vehicle as quoted. However, last night Tesla informed my sister that corporate had decided not to offer the $2000 discount and wanted to know if they would like to proceed without the discount.

Any thoughts on who to escalate this situation to?

lilbean | September 25, 2017

I would contact the sales manager.

Tropopause | September 25, 2017

Thanks, lilbean. I have already suggested to my sister to contact the sales manager and possibly the regional sales manager. I told my sister if she has in writing the $2000 discount then she should escalate the situation and see what can be done.

carlk | September 25, 2017

Sounds like higher ups vetoed the discount offer. They probably don't want to get themselves in trouble with Elon. Elon was pretty upset last time when he learned about discount made in certain sales.

phiraks | September 25, 2017

Similar thing happened to me. I went and test drove a model X and configured it there afterward. They called the following week saying there is a car in a showroom that match to what I wanted.

Long story short, I picked up the car with 300 miles on it and $6500 discount. It might help if she has paperwork proved that there was an agreement upon the $2000 discount.

Tropopause | September 25, 2017

Carlk,

That is exactly what happened. The discounted car wasn't even finished with production. Maybe somebody backed out of the deal, possibly forfeiting their $2,500 so Tesla Showroom decided to offer it to my sister for $2,000 discount. The VIN is about 2,700 earlier than her custom order so she would have received it earlier. Suddenly corporate vetoed the deal and that was the end of it.

Maybe Tesla can offer something for the confusion. If not, my sister still has her original custom order in progress.

Triggerplz | September 26, 2017

@Tropopause Hopefully they will be a man of their word and stand behind the agreement

patswin | September 26, 2017

When I bought our mx I had a referral code for them to apply. The salesman forgot to put it in and of course they won't let you add it after the fact. I insisted on my $1000 so to make it up I got a$1000 of stuff. The wall connector, jackets and t shirts. I was happy with that because I know I never would have bought that stuff otherwise. I already had a charger which I would have used but would have had to use the adapter every time. Might be hard to get $2000 worth of merchandise but whatever she gets would be better than nothing.

Tropopause | September 26, 2017

hawkeye,

Good idea. Tesla has always been good about making things right.

burdogg | September 26, 2017

Tropo - I would play a little hardball - it just seems dumb for them to pocket someone else's deposit only to put this on the floor to later discount as they have done int he past with inventory cars. You would think they would want to get rid of it and hey, you already had someone pay $2500.

I understand the no discount policy, but we have seen that policy out the window at times and even after Musk tweeted. End of quarter, inventory cars with a little older hardware are always being discounted.

Tropopause | September 26, 2017

HQ is looking into this situation and will get back to us.

I agree with you, Burdogg. OTOH, if my sister were to receive the earlier VIN fresh from the factory, then her later VIN would now be available, starting a chain reaction of swapping events. I'm not sure how Tesla normally handles a cancellation during production but from what I understand only inventory cars can be discounted, not custom build cars currently in production.

burdogg | September 26, 2017

Very true Tropo - but has hers entered production even yet? I bet if it hasn't then they will come out ahead, as yes, parts ordered, but could be applied to someone's future order and not out a whole lot. Yes, they can't do this on a regular basis, but in this situation, it helps them out.

If hers is already in production, then yeah, they now just get a car a little later to have to get rid of :)

pawarid.matthew | September 26, 2017

Similar thing just happen to me too. They decided to tell me last minute that price of car will be $3500 higher out of no where and they won’t do a thing for it except I need to order a new one and hope for no glitch. The way they present was more like “too bad” and I did not expect that and kinda shocking to me when I’m buying a 100k+ luxury car.

So far manager won’t compensate me with anything despite its absolute their error (which they decided to let me know on my initial delivery date) but OA is trying workout something. Seems like this has been a new common problem :(

lilbean | September 26, 2017

What a shame!

scabello800 | September 27, 2017

If the purchase and sale was fully agreed upon, then I think there is a contract. Whether enforceable in court, I don't know because it is a car (could have some different legalities), but Tesla should honor it. Now if they said "we can get this for you and need to get it approved" and it didnt get approved, then I think you just need to forget about it and decide if they want the car today or wait their own build number.

It tends to bode well for tesla is the long-run that they do not need to give discounts. I think discounts on 0 mile cars do not make sense and Elon should be upset. It should cost more to get a Tesla today than waiting for a build. Unless it is a loaner or demo car, I dont understand the discount

Bonlaw | September 28, 2017

My experience is that Tesla was very accommodating with a matching price reduction because days after I confirmed the new build price was reduced.

Tropopause | September 28, 2017

If Elon's family doesn't get a discount, my sister is out of luck! ;)

https://finance.yahoo.com/news/elon-musk-wont-family-members-140339713.h...

johnse | September 30, 2017

With the referral code your sister should also get free Supercharging.

Tropopause | September 30, 2017

HQ contacted the local showroom, had them phone my sister to explain the situation. After some discussion they came to a mutual agreement which benefitted both parties. My sister will wait for her original order to finish production.

One challenge associated with fast company growth is managing the standardization of policies, in this case the no discount on custom orders policy. Well-meaning sales agents must not step outside the sales boundaries placed upon them by Tesla.

Thanks Tesla!

avesraggiana | October 1, 2017

Speaking of which, how DO you apply the $1000 referral code when YOU are the one ordering?

I was very lucky. The first and only other time I’ve ever ordered a Tesla, realising after finalising the order that I had not been presented with the opportunity to apply a $1000 referral code, I emailed my OA right away, who then retroactively applied the referral code I gave her to my order.

I would rather not have to go through that again.

avesraggiana | October 1, 2017

Oh. And is there anything preventing me from using my own damn referral code, since no one else ever has?

joemar10 | October 1, 2017

In Va & OH you can give someone a code, but cannot reap the benefits. Thanks to all of the legislators who are in the pocket of Auto Dealers Associations, or are actually auto dealers themselves. They don't want "unauthorized" individuals who are not affiliated with dealerships and have not gone through Sleaze, Scam & Cheat school, selling cars

bob | October 1, 2017

@avesraggiana - yes you can refer yourself. You need to do it at the front end of the ordering process. From the myTesla page click on your referral code. It'll take you to a page to configure the vehicle. You can't configure a car then apply the referral code (at least I haven't found a way to do it that way).

TeslaTap.com | October 1, 2017

@joemar10 +1!

avesraggiana | October 1, 2017

@bob Excellent! That’s how I’ll do it, and today I confirmed from the same OA who sold us our Model S that here in California, we may indeed use our own referral codes.

SteveMost | October 2, 2017

Well said, @joemar10!