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?
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
How safe is the deposit?
- Thread starter CuriousSunbird
- Start date
Your deposit money is perfectly safe.
(down Elon's trousers)
(down Elon's trousers)
If you're that worried about your deposit, are you sure you can afford the car?
Tam
Well-Known Member
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.
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?
The car looks fine, but I saw the company is only rated B- by S&P. That's pretty low!
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.
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.
Thomas Edison
Active Member
strykeroz
Member
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 
BluestarE3
Active Member
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.
shrspeedblade
Rideshare Monkey
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.
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.
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.
hockeythug
Active Member
JeffK
Well-Known Member
Your money is so safe that, even if YOU want it back, it might take a few weeks due to "processing".
Tesla is on-track and there's no sign of impending financial doom.
Tesla is on-track and there's no sign of impending financial doom.
I'm still waiting for my Coolest Cooler...wait, wrong forum.
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
If they stock market crashes (like was mentioned) there will be far greater consequences than my $1000 bucks.
melindav
☰ 2018
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.
CmdrThor
Active Member
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.
Big-T
Member
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.
Similar threads
