Arbitration?

[Shopaholic]

Hi all,
I learnt only recently reading in one of the forums that you are automatically enrolled in Tesla arbitration unless you opt out in 30 days. I never did this before and wondering what’s the best option from your experience. Opt out or keep the arbitration clause. Thanks

 

[bnsfengineer]

If I remember correctly depending on the purchase date your entitled up to $200. In my case purchased my MS after Jan 17 and I could receive a whopping $20. If you opt out I believe you would sue them yourself and hire an attorney.

 

[PessimiStick]

Opting out is almost always better. Arbitration almost always favors the company paying them, not the consumer.

 

[Evil Twin]

I'm biased, but NEVER AGREE TO ARBITRATION!!!!!

 

[Daisame]

I am going to betaking delivery of a new Model X next week. I just signed my Agreement, and read about the Arbitration policy. I immediately wrote the letter to Tesla and put a stamp on it. It will be sent the day I take delivery of the car. I personally think you should NEVER be forced, or even automatically opted into private arbitration. This almost never works in favor of a plaintiff.

I highly encourage all buyers to print up that letter and have it ready to send so you are not automatically opted into an arbitration if something goes wrong with your vehicle.

 

[BCNY]

Isso there a template for the letter I must send? Thanks!

 

[Daisame]

Nope. I just created one with Word. Let me see if I can sanitize it and post it here.

<NAME>
<ADDRESS>
<CITY/STATE/ZIP>
<DATE>

Tesla, Inc.
PO Box 15430
Fremont, CA 94539-7970


I am formally requesting to opt out of the Arbitration Provision of my “Motor Vehicle Order Agreement”, using the instruction provided in the “Agreement to Arbitrate” provision section on that document.

Name: <NAME>
VIN: <VIN>

Please provide written confirmation of receipt of this request to the address provided above.



Sincerely,
<NAME>

 

[BCNY]

Thank you.

 

[Daisame]

I would say one final thing. Keep a digital copy of the letter and a date when it was mailed. I don't know if Tesla will send confirmation that you have opted out, but if they don't and you have a record of when it was sent, I believe that would be sufficient to use in a court case, if challenged.

I am no lawyer, but I believe in most cases, a letter is considered received if sent through US Mail. There are certainly conditions where signature confirmation and other receipt confirmations are required, but for this purpose, it may not be required. Having a record of when it was sent and a copy of it, will help document that you requested to opt-out in good faith.