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How safe is the deposit?

Discussion in 'Model 3' started by CuriousSunbird, Jun 28, 2017.

  1. CuriousSunbird

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    I am thinking about putting down a deposit on a Model 3, but I am a little worried about the safety of the money. If there is a stock market crash or another financial crisis there might be a lot of people trying to get deposits back (potentially $600 million) at a time when Tesla might find it difficult to raise cash. Are the deposits in some kind of escrow account, or is there a way to get comfortable that the money will come back?
     
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  2. John Green

    John Green Banned

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    Your deposit money is perfectly safe.
    (down Elon's trousers)
     
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  3. TexasEV

    TexasEV Well-Known Member

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    If you're that worried about your deposit, are you sure you can afford the car?
     
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  4. Tam

    Tam Active Member

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    In a bankruptcy, the money will be held up in the court.

    Big creditors will likely be able to influence the court on how the payout will be.

    Small investors and depositors might not have much power to influence the court proceedings.
     
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  5. Runt8

    Runt8 Active Member

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    If you’re concerned about the viability of the company enough to be worried about a $1000 deposit, why would you ever consider buying a car from them?
     
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  6. CuriousSunbird

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    The car looks fine, but I saw the company is only rated B- by S&P. That's pretty low!
     
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  7. MogWV

    MogWV Member

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    From the Model 3 reservation agreement:

    Yes, if Tesla goes bankrupt before delivering the Model 3, you could lose your money. Up to you to decide how likely that is and figure out your tolerable level of risk.
     
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  8. Thomas Edison

    Thomas Edison Active Member

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    Well, clearly that means they could easily go out of business soon.
     
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  9. strykeroz

    strykeroz Member

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    It was a far riskier prospect in April last year than now imo. And for what it's worth there are far riskier places to put your money. Having me hold it for you is just one example that springs to mind ;)
     
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  10. BluestarE3

    BluestarE3 Active Member

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    Well, you can buy a Model S instead and get it after a relatively short wait, thus minimizing the amount of time your deposit is at risk of Tesla potentially going under. :)
     
  11. shrspeedblade

    shrspeedblade Member

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    The old adage, "Don't gamble what you're not prepared to lose!" certainly applies. If the deposit had been $5000 I wouldn't have done it, plenty of others might have but not me. You just need to decide for yourself what amount you could write off with only being somewhat peeved and disappointed.

    For what it's worth, I consider the risk far less than I did 15 months ago, and I didn't think it was too risky back then.
     
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  12. JoeZ

    JoeZ Member

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    The money is safe. I had a M3 first day reservation and canceled it after I bought MX, it took 1 week for the money to refund to your account. Also, you don't need to worry about the stock ratings. if you invested $1000 last Christmas you will have $2000 on your broker account right now.
     
  13. hockeythug

    hockeythug Active Member

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    There are risker instruments out there to park $1,000 for a year or so.
     
  14. JeffK

    JeffK Well-Known Member

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    Your money is so safe that, even if YOU want it back, it might take a few weeks due to "processing". :p

    Tesla is on-track and there's no sign of impending financial doom.
     
  15. TrickyDimitri

    TrickyDimitri Soon...very soon.

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    I'm still waiting for my Coolest Cooler...wait, wrong forum.
     
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  16. flamingoezz

    flamingoezz Member

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    What does wanting your money to be held securely have to do with being able to afford the car..there are people who have money and don't treat it frivolously

     
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  17. Stirfelt

    Stirfelt Member

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    If they stock market crashes (like was mentioned) there will be far greater consequences than my $1000 bucks.
     
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  18. melindav

    melindav ☰ reserved

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    look at it this way... trading of S&P500 Index is up 8% in the last six months. $TSLA is up 70% in the same six months.
    Likely the only reasoning for the not perfect rating is Tesla is growing - hence spending everything they bring in plus some. So to an analysis, this may look like a bad move. If you expect a company to grow and expand, there will be a number of years where there is more spending. I am 100% sure Tesla will not be the next auto company to die.
     
  19. CmdrThor

    CmdrThor Active Member

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    The point of the deposit it to allow Tesla to use the money for R&D costs before the car is available in exchange for an earlier opportunity to order the car. If you want your money to be held securely, keep it in your bank account until orders can be placed without a reservation.
     
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  20. Big-T

    Big-T Member

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    Don't worry, it's waaaay safer than that $1,000 you wired to that Nigerian prince last week in exchange for his reservation of VIN# 000001 off the model 3 line in July.
     
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