Tesla order agreement is now a "BINDING ORDER AGREEMENT" to take advantage of $7,500 tax credit

[ModelAZ]

REAKING: TESLA HAS UPDATED THEIR ORDER AGREEMENT FOR ($7,500 IRA CREDIT)

• Now it is a "BINDING ORDER AGREEMENT"
• To comply with IRA $7,500 Tax Credit
• Shows on Ordering page - next to $250 deposit

Also updated is the Incentives section:

"Tesla makes no promises, warranties or guarantees regarding fund availability or your eligibility for any incentives, rebates and tax credits (the “Incentives”) related to the Vehicle (including, without limitation, due to repeal of Internal Revenue Code Section 30D credit (and the application of the effective date provisions related to that repeal)).

Simply entering into this binding Order Agreement does not ensure your eligibility for any Incentive. Consult a tax professional.

If Tesla has credited your Purchase Price for the amount of an Incentive, but you do not qualify for the Incentive, you shall reimburse Tesla for the amount of the credit.

Failure to reimburse Tesla will constitute a default under this Agreement at which time Tesla may exercise any remedies available to it, including repossession of the Vehicle. "

Source: DennisCW

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[Lasttoy]

Turbo Tax asked my Vin, etc. I bought 2 tesla last year. I got credited with both. Then ask about battery power i said yes. Got credited for that. I think i got 15k credit

 

[HaulingAss]

Tesla's order agreements have always been binding (you lose the deposit if you cancel your order). Tesla may have updated the language to make it more explicit (due to the changes in the tax credit), but I don't think it changes much of anything.

It looks like Tesla might have quite a backlog of Q3 orders that don't get delivered until Q4. People want to get in on that free $7,500 before it's gone!

 

[PungoteagueDave]

Tesla's order agreements have always been binding (you lose the deposit if you cancel your order). Tesla may have updated the language to make it more explicit (due to the changes in the tax credit), but I don't think it changes much of anything.

It looks like Tesla might have quite a backlog of Q3 orders that don't get delivered until Q4. People want to get in on that free $7,500 before it's gone!

False. Tesla always refunded deposits until a couple years ago.

 

[HaulingAss]

False. Tesla always refunded deposits until a couple years ago.

No. Actually Tesla has always made it clear that a purchase order entailed an expenditure of money and resources to take the order and deliver a vehicle of certain specs to a particular location and therefore the purchase deposit was non-refundable if the order was cancelled. Any and all refunds were done out of goodwill.

Nothing leads me to believe that situation has changed.

 

[PungoteagueDave]

No. Actually Tesla has always made it clear that a purchase order entailed an expenditure of money and resources to take the order and deliver a vehicle of certain specs to a particular location and therefore the purchase deposit was non-refundable if the order was cancelled. Any and all refunds were done out of goodwill.

Nothing leads me to believe that situation has changed.

It is a binding order today but wasn’t until about two years ago. You say “always”. I have purchased seven vehicles directly from Tesla. In no case was an order binding up to the point of delivery. In fact, twice Tesla told me they would unilaterally cancel and refund my deposit if I couldn’t pick up my vehicle on a specified date (not one day prior or later), and would given my car to another buyer. In one case, a Sept 2019 MX delivery, I received delivery date notification via InReach satellite messenger while sailing my boat up the Atlantic from Florida. I called via satellite phone and was told to be at the Owings Mills delivery site in three days or receive a refund and reorder. I put over to port and came into Brunswick, GA, left my crew on board, rented a car, round tripped to Maryland, took delivery, and went back to sea. I also cancelled a MS order in 2014 after receiving shipping notice but after Elon announced the P85D, but before the preorder window opened. The fact that I had been assisting Tesla (pro bono) to overcome political obstacles in two states wasn’t a factor - I knew several other people who cancelled orders up to the date of delivery and received refunds. Even today all you have to do is find a minor flaw at delivery and they will cancels and refund.

Tesla never started this no refund deposit thing until they began building inventory. They didn’t have to. I received refunds on two other confirmed orders over the years due to multiple month overseas travel overlapping with Tesla’s delivery schedule. You are most definitely mistaken.

 

[PungoteagueDave]

Tesla's order agreements have always been binding (you lose the deposit if you cancel your order). Tesla may have updated the language to make it more explicit (due to the changes in the tax credit), but I don't think it changes much of anything.

It looks like Tesla might have quite a backlog of Q3 orders that don't get delivered until Q4. People want to get in on that free $7,500 before it's gone!

If the 2019 tax credit end for Tesla is any indication, the net price to buyers won’t change anyway. Tesla will drop the MSRP. In 2019 they ate the entire credit through adjusting the MSRP.

 

[HaulingAss]

Tesla never started this no refund deposit thing until they began building inventory. They didn’t have to. I received refunds on two other confirmed orders over the years due to multiple month overseas travel overlapping with Tesla’s delivery schedule. You are most definitely mistaken.

You have no idea what you are talking about. Here is the specific language cut and pasted directly from my order of a Model 3 Performance in 2018:

Order; Nonrefundable Order Payment; Changes.
Once you submit your completed order, we will locate a vehicle to match your Vehicle Configuration and coordinate the shipment of the Vehicle for delivery. Your Order Payment covers the cost of these activities and other processing costs and is nonrefundable; it is not a deposit for the Vehicle. Any changes to your Vehicle Configuration, delivery location or expected delivery time after the Order Date will be difficult, if not impossible, for us to accommodate. If you want to make changes to your order, we will try to accommodate your request. If we accept your request, you will be subject to a non-refundable $500 change fee and potential price increases for any pricing adjustments made since your original Order Date. Any changes made by you to your Vehicle Configuration, including changes to the delivery location or estimated delivery date, will be reflected in a subsequent Vehicle Configuration that will form part of this Agreement.

Cancellation; Default.
We incur significant costs in managing your order, and locating and coordinating delivery logistics for your Vehicle. We may also incur significant costs for remarketing and reselling the Vehicle, including additional coordination, logistics and transport costs. If you cancel or default in this Agreement, you will not be refunded your Order Payment as it has already been earned by us in taking and processing your order. You acknowledge that the Order Payment amount is a fair and reasonable estimate of the actual damages that we have incurred or may incur as a result of your breach of this Agreement, damages that are otherwise impracticable or extremely difficult to determine. When you take delivery of the vehicle we will provide a credit to the final purchase price of your Vehicle equivalent to the amount of the Order Payment you paid. This Order Payment and this Agreement are not made or entered into in anticipation of or pending any conditional sale contract.

You need to stop spreading Tesla misinformation. Don't you ever read your purchase and sale contracts? The contract language above was from almost 8 years ago. You have zero credibility after you claimed Tesla had the highest fatality rate of any auto manufacturer, then deleted your post and claimed you never said that. No honor, no credibility, that's no way to live.

 

[HaulingAss]

If the 2019 tax credit end for Tesla is any indication, the net price to buyers won’t change anyway. Tesla will drop the MSRP. In 2019 they ate the entire credit through adjusting the MSRP.

You can speculate all you want about what Tesla MIGHT do. But this is a very different time period than in 2019. I think you will shortly be proven wrong, Tesla will not drop the price on all models currently eligible for the tax credit by $7,500 when the tax credit is no longer available. You seem divorced from reality.

Anyone who has been following you knows not to trust anything you claim.

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