TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Kickstarter Campaign

Discussion in 'Model 3' started by sandpiper, Apr 1, 2016.

  1. sandpiper

    sandpiper Active Member

    Joined:
    Sep 25, 2014
    Messages:
    1,463
    Location:
    Ontario, Canada
    I'm incredibly impressed at how Tesla is managing this Model 3 roll-out. If they can get 500K people to drop a $1K deposit on a vehicle that will arrive.... sometime... this gives them half a billion dollars to play with that they don't need to raise through equity or debt financing. This is almost like a kickstarter campaign taken to an absolutely absurd level. Has ANYTHING like this ever happened on such a scale in the history of ANY industry? Let alone the auto industry? Could you IMAGINE General Motors pulling this? The media would ridicule them mercilessly.

    Think about that... half a billion dollars, loaned to the company at zero interest, by half a million people with no guarantees as to when the product will arrive. If Tesla succeeds, they sell a pile of cars. If they fail, the money goes away.

    Anybody who doubts the brilliance of the people running this firm should have their head examined. I confess that, despite being an enthusiastic owner of a Model S, I was having doubts about whether or not they would be able to hang-in to make this venture a long-term success. I humbly concede that my doubts were foolish. This has been managed supremely well.
     
  2. Boourns

    Boourns Member

    Joined:
    Mar 9, 2016
    Messages:
    657
    Location:
    Dallas
    I think it's a little different than a Kickstarter campaign since the deposits are refundable, and Tesla was already an established company. I would think if the 3 is delayed by two or three additional years they will lose a lot of those deposits. And if the company went under, I suspect you could potentially have a large class of creditors, albeit likely with low priority. Though I am not sure how that'd work cause I am not that kind of lawyer.

    That being said, your point is absolutely true. This is unprecedented, and I don't think any other car maker could have pulled it off as successfully.
     
  3. sandpiper

    sandpiper Active Member

    Joined:
    Sep 25, 2014
    Messages:
    1,463
    Location:
    Ontario, Canada
    What does "refundable" mean
    What does "refundable" mean though? This is an "all chips in" bet for Tesla. If the 3 succeeds, they are in the big leagues. If it fails, there is no Tesla to do the refunding. I haven't seen the agreement but I doubt very much that the 1K deposits are secured. And the only way that people will start asking for refunds en-masse, is if the company is on the verge of collapse and unlikely to deliver the cars.

    Again... absolutely brilliant..
     

Share This Page