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

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

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.

DTsea | 19 maj 2018

TEA score?

lilbean | 19 maj 2018

Extra points for whine and drama.

Fcos154 | 19 maj 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.

bp | 20 maj 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.

sbeggs | 20 maj 2018

@bp,
Wow! I didn't know UPS could handle a package that big!

sbeggs | 20 maj 2018

What is Tesla's account number? I would like to set up for Fidelity account wire transfer but don't have VIN yet.

mark.gacka | 20 maj 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.

Fcos154 | 20 maj 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!

Uncle Paul | 20 maj 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.

Uncle Paul | 20 maj 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.

Uncle Paul | 20 maj 2018

Sorry for duplicate post.

mark.gacka | 20 maj 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.

TeslaTap.com | 20 maj 2018

@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.

lilbean | 20 maj 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.

mark.gacka | 20 maj 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.

mark.gacka | 20 maj 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.

mark.gacka | 20 maj 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?

mark.gacka | 20 maj 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?

adam.white32 | 20 maj 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.

adam.white32 | 20 maj 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.

adam.white32 | 20 maj 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.

johnyi | 20 maj 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.

mark.gacka | 20 maj 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.

mark.gacka | 20 maj 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.

mark.gacka | 20 maj 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.

lilbean | 20 maj 2018

I still actually think Tesla is not to blame since the car was not in your possession yet. I would have waited to get rid of the car after I had the keys to the new one in hand. But that is just me.

adam.white32 | 20 maj 2018

We need to differentiate between needing “cash” and raising capital. They have billions in cash, but when they talk about future plans to have facilities for their semi-trucks and future projects they will raise capital for those investments. That is not something they do by hanging on to $60k from a couple customers. They can do it with stock sales, or other things. Having a plan to raise capital to expand capabilities and manufacturing capacity is not the same as being in a position of “trouble” and needing cash.

Thank you for the clarification on your statement, I was confused because you said:

My car was given to the new owner on May 17th at 4 pm. At 6:15 PM.

I didn’t know what “new owner” meant. I guess that is the body shop that is doing the repair.

Maybe the damage is worse than you think, or was told. It doesn’t mean the company is not ready for Model 3 because your service center isn’t doing the body work, there could be infinite reasons why they don’t do it, or maybe they are just not fully staffed and ready yet. I don’t know which AZ centers can do paint work, maybe all?

adam.white32 | 20 maj 2018

Okay, regarding your timeline, that actually makes sense to me. I assume the call came to confirm the appointment when the truck arrived with your car. It takes some time to remove the cars from the trailer and then to assess them. Then, they found the issues from transporting your car, and called to let you know it wouldn’t be available.
I know from my experience that it takes about half the day to get my car off the truck, inspected, checked and washed before delivery. I don’t see anything wrong.

To lilbean, I see where he is coming from. He shelled out the money and wants his car. I don’t agree there is a problem, but I remember that the three delay for my car was unpleasant when you are buying a $60k car that you haven’t even seen. He is upset because he paid and he wants his car. I don’t think he is complaining that he is stuck without transportation. He said he would like a Tesla loaner, but I believe he is saying that is a courtesy they should have made available to him because of the damage and delay that he didn’t cause.

lilbean | 20 maj 2018

I know. I paid double that for a car I hadn't seen. Getting upset about it doesn't make it feel better or make it arrive faster. Gotta just enjoy life and be grateful to be getting an awesome car.

Yodrak. | 20 maj 2018

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

Warning - don't pay for any major, expensive, item before delivery.

"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."

My DS told me last Thursday that a personal check would be OK, certified or cashiers not necessary. I will call again to confirm that based on what I'm reading in this thread.

" ... What was I originally saying? I forgot."

A bit too much to drink while posting?

lilbean | 20 maj 2018

Haha!

johnyi | 20 maj 2018

@mark.Gacka, and yet, the one person who actually knows the internal finances of the company and where things are headed says Tesla will not need any financing this year. All the ones you quote are sell side banks looking to make Tesla look bad so the stock goes down and they can cash in on their short positions. They don't know squat, and have been wrong before about Tesla, Amazon and plenty of other companies, not to mention what they did to the whole economy back in 2008 with their incompetence.

Looking at the 10Q, Tesla has enough cash to get through the end of 2018 at the current burn rate, even without ramping up Model 3 production. But by ramping up to 5000 M3's per week in Q3, the cash burn goes away. Simple math; I'm not sure how you're calculating it different.. As for pre-orders? They have nearly $1B now, according to the 10Q, up $140M from Q4. Did you even look at it? People are not cancelling; most are waiting for AWD, white interior, P model, or SR battery.

Beyond 2018, he'll probably finance the expansion of Tesla with new factories in China and Europe, but as someone else said, that's far different than needing cash to stay in business.

I think all you're experiencing here is the fact that you aren't at a traditional dealer. When you buy a car from them, either you buy one already prepped off the lot, or you order it and have no idea where it is in the process until it arrives and they call you (Been there, done that). Tesla is much more transparent, notifying you of every step, but then you also get to see the issues that occur at all dealerships. And Tesla's delivery centers aren't as big or profit driven as a dealership, so they don't have their own paint shops onsite. I kind of doubt they ever will, even as they scale up. So there are a few advantages to a traditional dealership I guess. Maybe if supply ever catches up with demand, Tesla can have cars sitting on lots waiting for people to buy them. Feels like that's a long way off however.

bp | 21 maj 2018

All manufacturers will have cars damaged periodically during transport. If the damage is minor (paint chip), the dealer will repair the car. We had a Lexus damaged so badly the local dealer couldn't sell us the car and had to wait for another one in our configuration to be delivered.

Among the many cars Tesla is delivering each week, there will likely be a few that see some damage during transport. If Tesla wasn't handling this situation well, we'd likely see more than a few complaints in the forums.

Compared to our 2012 S P85 delivery, last year's S 100D went smoothly. The only hiccup was a delay in all S 100D deliveries because Tesla hadn't received the official EPA mileage ratings, and Tesla couldn't deliver any S 100D's in the US until the EPA numbers were released. This resulted in about a one month delay in delivering S 100D's - Tesla shipped the cars to service centers, who were storing them until they had approval to start deliveries. And once the EPA hold was released, the delivery was very smooth - taking care of everything including trade-in, state inspection, collecting sales tax and ordering the license plates - surprising since they can't sell cars in Texas.

It's possible the issues being reported here are isolated cases, which may be due to a combination of factors, such as a Service Center that isn't managing the delivery process well (not surprising, with Tesla's growth that they may have a few places that need more training), coupled with creating a situation where customers are being required to pay for a car before delivery - and when failing to deliver, unable to deliver a refund.

We have an X 100D on order, and based on our past experience, aren't concerned about the delivery process. Our local Service Center appears to have the process under control.

However, for anyone that is concerned about this - I'd strongly recommend they contact Tesla. If you have a car on order, consult with your delivery specialist and go through the delivery process - and confirm that you'll be able to inspect your car prior to delivery.

While we paid for our first S P85 before Tesla would ship it from the factory - that was in Tesla's early days, as they were transitioning from delivering small numbers of Roadsters to having a network of Service Centers delivering new cars every day. What was acceptable back then - is not acceptable today. Noone should be required to pay for a car prior to delivery - and if you do pay - and they don't deliver - Tesla should not be able to keep the payment.

Note that Model 3 reservation owners that cancelled their reservations were having similar complaints - about Tesla taking an unreasonably long time to refund the $1000 reservation deposit. When we recently switched from buying a Model 3 to getting a larger Model X - Tesla refunded the $1000 within a few days.

The OP's situation seems unusual - and unacceptable - and the OP should contact Tesla HQ and discuss the situation and get it resolved to their satisfaction. Tesla has had strong customer loyalty - which they wouldn't have if they were treating many customers this way.

mark.gacka | 21 maj 2018

johnyi:

Most of what you say is true. However many of the "sell side banks" were recommending to purchase Tesla not long ago, but are now recommending to sell because of the deteriorating financial position of the company. The cash burn that you refer, is from day to day to operations only. What you fail to mention is that Tesla has billions in debt that they had borrowed previously that is coming due in 2019 and 2020. In addition, in 2019 they have an additional 2 billion in convertible debt that is due. The holders of this debt will not take Tesla stock in all likelihood because the value has decreased significantly.

In summary, the operations are burning through cash and they need billions more to pay off the current bond holders. Also be aware that the existing bonds have been given a lower rate. Please read was is available in the public domain (internet) and you will see what I am saying is the truth. The financial experts have asked the the management of the company to dispute these analysis, but they refuse to do so. The CFO has resigned.

Future expansion is a another kettle of fish and will require additional cash (capital) than the $10,000,0000,000 they need to refinance the debt and fund operations.

Please read the details and keep an open mind. I am a large stockholder and have been concerned about the financial condition of the company and management's response for the past six months. I want Tesla to succeed, but they have a long way to go.

Believe me, I stand to lose a lot more than a measly $62,000 on the car.

mark.gacka | 21 maj 2018

johnyi:

In regard to the comments regarding the traditional dealer, my opinion is a simple one. In order for Tesla to compete in the long run, their delivery centers and service centers have to equal in customer satisfaction to the dealers that exist today and in the future.

BroemBroem | 21 maj 2018

As someone in the process of purchasing a MS, I am super surprised you don't have a VIN yet. I got mine a week or two after order.

Looks like consumer protection in the EU is just much better than in the US.

Rocky_H | 21 maj 2018

People can be patient earlier or patient later.
You can pay ahead of time, knowing that you may have to wait without those funds if something happens to the delivery date.
Or you can not pay in advance, and go inspect the car first, but then you may have to go home without the car for a couple of days while they want for the funds to clear.
You do have the choice of either of these options, depending on which would bother you more.

johnyi | 21 maj 2018

@mark.gacka, I agree with most of what you say. And I've read the articles that Tesla needs to raise $10B, but through 2020, not through "year end" that you stated above. That was what I responded to. I haven't read anyone thinking Tesla needs more than $2-3B in 2018.

I think you also underestimate what the stock price will be in 2019 when those convertible bonds are due :-) By then, the M3 will be in full production and all this ramp-up hell behind us, the $35K version will be shipping, the Model Y will be announced with fanfare and another ton of reservations, they will have announced a factory in China, etc. And still no viable alternative for an affordable, attractive EV!

@BroemBroem, I'm in the US and got my VIN assigned immediately after ordering my MS. I think it's just the M3's that have delayed VINs.

Uncle Paul | 21 maj 2018

Financial analysists have turned around and now are more Tesla Positive.

They just realized that the new AWD and performance options on the popular Model 3s will boost the profit margins far beyond what they were figuring when everybody thought that Tesla was going to sell most of them at the $35,000 base price.

The margins on these well equipped Model 3s will provide far higher margins than on the already profitable model S and X.. The upcoming New Coupe will also be extremely profitable as well as the Tesla Semi.

Tesla has stopped giving away free Supercharging for new orders and this also will open up a tremendous opportunity to enhance cash flow.

Space X is making money hand over fist with their super busy launching of profitable reusable rockets.

The roll out of battery storage for utility energy storage and home use is exploding in many unexpected areas. Every battery the can build is finding a profitable home.

Tesla's Solar roofing tiles is getting a hube boost, as California has now mandated that all new homes will be required to include solar roofs. Putting on a Tesla tile solar roof will be much cheaper than puting on a standard tile roof and then covering it up with expensive (and ugly) solar panels.

The city of LA is working with the Boring Company to roll out underground tunnel loops to deal with the terrible traffic jams on the surface street.

Dubai is going forward with Hyper Loop technology to link their Desert cities and ports.

Seems like most everything is breaking in Tesla's favor.

As far as Tesla needing more funding, I believe that they will just roll over and refinance that bond issue that is coming due, and finance the rest of their growth by profitability and co-funding of future battery and automotive plants with strong partners or even governments.

Every country in the world wants to have a Tesla manufacturing plant in their jurisdiction. While they require huge investments they employ thousands of citizens, attract many supplier plants nearby and have the worlds highest technology and cleanest operations.

As Elon says...Place your bets.

SCCRENDO | 21 maj 2018

Oops. Thanks for the warning. Did it twice. In April 2013 i did it for my Model S with142000 miles now and made the same mistake with my Model 3 in Jan this year and it now has10000 miles onit. But I promise I wont do it again.

lilbean | 21 maj 2018

Oops. I did it too. And the Tesla meanies gave me a loaner while I waited for the car. Unbelievable!

rxlawdude | 22 maj 2018

@bean, "People shouldn't get rid of their current car until they have the replacement car in their possession."

I respectfully disagree (having been through a late December delivery drama that ultimately turned out fine). The Uniform Commercial Code specifically deals with this situation.

(To recap, we were promised a date and time certain delivery. The evening before delivery, we sold my wife's car. That evening, Tesla called to say the car wasn't at Marina del Rey. I then got a call from Costa Mesa congratulating me that the car was there and ready to be picked up. It was in fact in Marina del Rey, and we indeed picked up the car the next morning there, on the day promised.)

But where a buyer has conveyed the entire purchase price, and doesn't get the vehicle when promised, that's an even worse scenario.

Per UCC 2-711(1) where the seller fails to make delivery or repudiates or the buyer rightfully revokes acceptance then with respect to any goods involved ... the buyer may cancel and whether or not he has done so may in addition to recovering so much of the price as has been paid ... have damages as to all the goods affected whether or not they have been identified to the contract.

Damages in this case include consequential and incidental damages, which someone who sold their prior car in anticipation of a promised delivery date include reasonable replacement vehicle rental costs at a minimum.

lilbean | 22 maj 2018

@lawdude How dare you! ;P

rxlawdude | 22 maj 2018

:-)

cownan | 4 juni 2018

I have been waiting for almost 2 weeks without an ETE for a broken window in Charlotte. Strange thing is that this happened to my boss as well. I feel like my excitement has been robbed since I see people I know who confirmed after me are driving around and I am waiting for mine.. Can't imagine it takes two weeks to replace a broken window..

julieoh212 | 6 juni 2018

Mark.Gacka, and everyone.
Thanks for sharing. I've become more and more disillusioned with Tesla as I await my Model X delivery. There is practically no customer service for my Monday delivery. (It's Wednesday now.) I don't know where to wire the money, but after reading this chain, it looks like a good thing. Is the maintenance department just as lacking?

Rocky_H | 6 juni 2018

I find the mobile service rangers to be far more convenient than a real service center for repair and maintenance. He texted me this morning when he got to the parking lot at my work, I went out to give him the key, and then he texted me when it was done, with the key locked inside, so I could use the mobile app after work to open the door and get it to leave. It's about as easy as it gets.

julieoh212 | 10 juni 2018

Mobile Service Rangers. Thank you Rocky!
PS, Monday delivery got moved to Thursday because the X never arrived over the weekend. grrrrrrr.

bp | 12 juni 2018

Well...

Tesla has changed their payment policy - again...

Last year, when our S 100D was delivered in Texas, we were able to pay for the car after we inspected it at the local Service Center and then accepted delivery.

For our X 100D which has just left production, Tesla is back to requiring payment prior to shipping - what they did when we received our S P85 in January 2013.

While we would prefer to pay for the car after inspection, Tesla isn't giving us a choice - unless we want to pick up the car at the factory (which would likely cost us an additional $2500 to $8000). So, as soon as we get the paperwork, we'll process it, send them the money - and then hope things work out (like early 2013).

Unclear if this is due to a cash flow issue or because they aren't able to sell cars in Texas.

dmm1240 | 12 juni 2018

Texas rules I imagine.

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