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Last I read, Tesla is holding $985MM in customer deposits. [1] Now they are asking for, I'm assuming, full payment for cars starting at $48,000. However, the

Last I read, Tesla is holding $985MM in customer deposits. [1] Now they are asking for, I'm assuming, full payment for cars starting at $48,000. However, the soonest one can be delivered is in "two to four months" and that's only for the trim that starts at $64,000. Plus there are now quite a few options costing in the thousands. For every 10,000 customers that place an order of the, likely, several hundred thousand current deposit holders, that's somewhere around $600 MM in additional customer money that Tesla would be holding. For every 10,000 customers. But that money won't deliver a physical product for months. Is this a play to make billions more in deposit money? Is this how they plan to take no more investment/debt this year? Is there anyone on the list looking to buy one that can confirm if this requires full payment? EDIT: Apparently, the ask is for an additional $2,500. [2] That would make $25MM per 10,000 customers that place an order. Putting forth the additional $2,500 also removes the ability for you receive a refund of the original $1,000 deposit if you do not cancel within three days. [1] https://www.bloomberg.com/graphics/2018-tesla-burns-cash/ https://www.bloomberg.com/graphics/2018-tesla-burns-cash/ [2] https://www.cnbc.com/2018/06/28/tesla-model-3-orders-cost-2500-more.html https://www.cnbc.com/2018/06/28/tesla-model-3-orders-cost-25...

greglindahl 8y ago
The deposit for a Model 3 is $1,000.
- venning 8y ago
  But the article isn't about offering deposits. It's about ordering.
  - greglindahl 8y ago
    Yes, I read the article. It was extremely unclear what you were asking, and it's definitely not the case that a full payment is required.
  - kgwgk 8y ago
    The order requires a $2,500 payment, not the full price.
    - venning 8y ago
      Ah, thank you. I see now there are better articles. I'll update the original comment.
CJefferson 8y ago
Are any of these deposits protected? I assume when Tesla folds, they will all be lost?
- greglindahl 8y ago
  You can get a refund of the deposit at any time for any reason -- but no, it's not in escrow or anything. Dunno about the order payment.
- aerovistae 8y ago
  Why would Tesla fold ?
  - koolba 8y ago
    Because they’re cash flow negative and would eventually run out of runway without either a change in financials or raising a new round.
    - dgudkov 8y ago
      Someone else would certainly buy them. The brand is too good to let it vanish. So it's just a matter of price -- the more indebted is Tesla the more likely someone would buy it.
      - dragontamer 8y ago
        Tesla as a brand will certainly continue to exist. Alas: that's not what is being discussed. If Tesla were to enter bankruptcy, then it legally is no longer necessary to uphold its end of any bonds, payments, or other such financial issues. Tesla might go bankrupt in the next few years, if this Model 3 thing doesn't work out. At which point, it won't return any of the money from these reservations.
  - saas_co_de 8y ago
    Because their current liabilities exceed their liquid assets by several billion dollars.
Matt3o12_ 8y ago
> Now they are asking for, I'm assuming, full payment for cars starting at $48,000 A quick searched reveled that the final payment is due at delivery, or shortly before deilivery [1]. When you finalize configuration, Tesla asks you for a $2500 non refundable deposit (although I have heard that they refund it in some circumstances as a matter of goodwill). This deposit is the same for all models even the Model 3, as stated here [2]: > And finally when you’re ready to place your order, a deposit of $2,500 is required which isn’t any different than placing an online order for a Model S or Model X. The only thing I cannot tell you is if the initial deposit counts toward the 2500 deposit or the final price. So Tesla doesn’t get billions in deposits and doing that would probably cause a lot of logistical problems and the media would scream that they are scamming customers and only do that because they are about to go bankrupt. [1]: https://forums.tesla.com/forum/forums/payment https://forums.tesla.com/forum/forums/payment [2]: https://www.teslarati.com/tesla-model-3-design-studio-configurator-2500-deposit/ https://www.teslarati.com/tesla-model-3-design-studio-config...
- venning 8y ago
  According to CNBC: > 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. https://www.cnbc.com/2018/06/28/tesla-model-3-orders-cost-2500-more.html https://www.cnbc.com/2018/06/28/tesla-model-3-orders-cost-25...
frgewut 8y ago
They say that cars will be delivered in 2 to 4 months. Also ordering costs $2500. I thought it is common to pay full amount upfront upon ordering cars, then wait a month or two for actual delivery.
- oblio 8y ago
  It depends on the place/country, regarding the payment. Regarding the delivery, there's two aspects: the first one is that delivery can take even more, even for regular cars. The second one is that I wouldn't be too confident as a Tesla customer, that I'll get the car in 2 to 4 months. 6+ months seems more realistic, based on their track record. All-in-all, if you really like the car, it doesn't seem a blocker.
- greglindahl 8y ago
  It is, with the proviso that it's rare for Americans to order a car before it's made -- we mostly buy them "off the lot". Tesla is unusual in that regard.
  - venning 8y ago
    As a former car salesperson, I can tell you that, in the state of Virginia, car sales contracts are not valid until the customer has physically taken possession of the vehicle. As a result, we were always very reticent to sell a car "off the truck". Customers would swear up and down that they'll definitely follow through but, most of the time, they'd just never come to pick up the vehicle and we'd be stuck trying to unwind a contract. I'm sure this is common in a lot of states.
  - uptown 8y ago
    I’ve ordered a car that wasn’t a Tesla in the US. I paid upon delivery.
  - mikestew 8y ago
    Nissan Leaf and a Scion xB, both ordered, both paid at the time of delivery, not before. No way I'd pay upfront for something I haven't even driven.
codeulike 8y ago
EDIT: Apparently, the ask is for an additional $2,500. [2] That would make $25MM per 10,000 customers that place an order. Right, and so the premise of your original comment no longer applies. Or am I missing something?

greglindahl 8y ago

The deposit for a Model 3 is $1,000.

venning 8y ago
But the article isn't about offering deposits. It's about ordering.
- greglindahl 8y ago
  Yes, I read the article. It was extremely unclear what you were asking, and it's definitely not the case that a full payment is required.
- kgwgk 8y ago
  The order requires a $2,500 payment, not the full price.
  - venning 8y ago
    Ah, thank you. I see now there are better articles. I'll update the original comment.

CJefferson 8y ago

Are any of these deposits protected? I assume when Tesla folds, they will all be lost?

greglindahl 8y ago
You can get a refund of the deposit at any time for any reason -- but no, it's not in escrow or anything. Dunno about the order payment.
aerovistae 8y ago
Why would Tesla fold ?
- koolba 8y ago
  Because they’re cash flow negative and would eventually run out of runway without either a change in financials or raising a new round.
  - dgudkov 8y ago
    Someone else would certainly buy them. The brand is too good to let it vanish. So it's just a matter of price -- the more indebted is Tesla the more likely someone would buy it.
    - dragontamer 8y ago
      Tesla as a brand will certainly continue to exist. Alas: that's not what is being discussed. If Tesla were to enter bankruptcy, then it legally is no longer necessary to uphold its end of any bonds, payments, or other such financial issues. Tesla might go bankrupt in the next few years, if this Model 3 thing doesn't work out. At which point, it won't return any of the money from these reservations.
- saas_co_de 8y ago
  Because their current liabilities exceed their liquid assets by several billion dollars.

Matt3o12_ 8y ago

> Now they are asking for, I'm assuming, full payment for cars starting at $48,000 A quick searched reveled that the final payment is due at delivery, or shortly before deilivery [1]. When you finalize configuration, Tesla asks you for a $2500 non refundable deposit (although I have heard that they refund it in some circumstances as a matter of goodwill). This deposit is the same for all models even the Model 3, as stated here [2]: > And finally when you’re ready to place your order, a deposit of $2,500 is required which isn’t any different than placing an online order for a Model S or Model X. The only thing I cannot tell you is if the initial deposit counts toward the 2500 deposit or the final price. So Tesla doesn’t get billions in deposits and doing that would probably cause a lot of logistical problems and the media would scream that they are scamming customers and only do that because they are about to go bankrupt. [1]: https://forums.tesla.com/forum/forums/payment https://forums.tesla.com/forum/forums/payment [2]: https://www.teslarati.com/tesla-model-3-design-studio-configurator-2500-deposit/ https://www.teslarati.com/tesla-model-3-design-studio-config...

venning 8y ago
According to CNBC: > 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. https://www.cnbc.com/2018/06/28/tesla-model-3-orders-cost-2500-more.html https://www.cnbc.com/2018/06/28/tesla-model-3-orders-cost-25...

frgewut 8y ago

They say that cars will be delivered in 2 to 4 months. Also ordering costs $2500. I thought it is common to pay full amount upfront upon ordering cars, then wait a month or two for actual delivery.

oblio 8y ago
It depends on the place/country, regarding the payment. Regarding the delivery, there's two aspects: the first one is that delivery can take even more, even for regular cars. The second one is that I wouldn't be too confident as a Tesla customer, that I'll get the car in 2 to 4 months. 6+ months seems more realistic, based on their track record. All-in-all, if you really like the car, it doesn't seem a blocker.
greglindahl 8y ago
It is, with the proviso that it's rare for Americans to order a car before it's made -- we mostly buy them "off the lot". Tesla is unusual in that regard.
- venning 8y ago
  As a former car salesperson, I can tell you that, in the state of Virginia, car sales contracts are not valid until the customer has physically taken possession of the vehicle. As a result, we were always very reticent to sell a car "off the truck". Customers would swear up and down that they'll definitely follow through but, most of the time, they'd just never come to pick up the vehicle and we'd be stuck trying to unwind a contract. I'm sure this is common in a lot of states.
- uptown 8y ago
  I’ve ordered a car that wasn’t a Tesla in the US. I paid upon delivery.
- mikestew 8y ago
  Nissan Leaf and a Scion xB, both ordered, both paid at the time of delivery, not before. No way I'd pay upfront for something I haven't even driven.

codeulike 8y ago

EDIT: Apparently, the ask is for an additional $2,500. [2] That would make $25MM per 10,000 customers that place an order. Right, and so the premise of your original comment no longer applies. Or am I missing something?