Model 3 reservation agreement mentions "authorized Tesla dealer"?!?

[tga]

This is interesting... Paragraph 2 of the Model 3 reservation agreement says (emphasis mine):

If and when we notify you that it is time to place your order for Model 3 and you wish to proceed with the purchase of a Model 3, such sale and purchase will be governed by a separate and legally binding Purchase Agreement between you and an authorized Tesla dealer (Tesla).

The same section of the Model X reservation agreement says "between you and us or between you and another Tesla subsidiary (Tesla)." (ie, nothing about dealers).

Insert appropriate emoticons here:

EDIT - Other tidbits from the agreement (not unexpected) #2 - nonbinding, fully refundable of cancelled by either party; #6 - one deferral allowed if you aren't ready to order when your number is called; #6 - "not transferable or assignable to another party without the prior written approval of a Tesla authorized representative."

EDIT #2 - This was from doc version "Model 3 RA – v.20160316" in case it changes (see footer).

 

[tinm]

I have long thought that Tesla might go the dealer route for Model 3. Even though I am fighting hard to get Tesla its own stores and service centers in New Mexico, I wouldn't put it past them to behind the scenes be planning to just open up franchises or do some sort of hybrid or otherwise novel dealership model perhaps with very strict rules about markups, level of service, etc. I figure it'll be just my luck to spend the rest of the year trying to change the NM law, only to find out Tesla was going the dealer route the whole time... sigh

 

[JST]

This is interesting... Paragraph 2 of the Model 3 reservation agreement says (emphasis mine):


The same section of the Model X reservation agreement says "between you and us or between you and another Tesla subsidiary (Tesla)." (ie, nothing about dealers).

Insert appropriate emoticons here:

EDIT - Other tidbits from the agreement (not unexpected) #2 - nonbinding, fully refundable of cancelled by either party; #6 - one deferral allowed if you aren't ready to order when your number is called; #6 - "not transferable or assignable to another party without the prior written approval of a Tesla authorized representative."

EDIT #2 - This was from doc version "Model 3 RA – v.20160316" in case it changes (see footer).

Also interesting is the address at the bottom of the Model 3 form, which is in FL. Are there different forms for different states?

 

[ucmndd]

Also interesting is the address at the bottom of the Model 3 form, which is in FL. Are there different forms for different states?

No, the Model X form also references FL. Probably just a locality that provides the most favorable legal terms for agreements like this.

 

[SureValla]

#6 - one deferral allowed if you aren't ready to order when your number is called.

I noticed that you have 10 days to elect a deferral. Does this translate to you have 10 days to make the decision as to which options you want and hit the order car button once we contact you?

 

[ItsNotAboutTheMoney]

This is interesting... Paragraph 2 of the Model 3 reservation agreement says (emphasis mine):

I wouldn't read too much into that, especially given that it says "(Tesla)". In at least some states where it can have a dealership it operates through wholly-owned subsidiaries. All it really "says" is legal separation of the parts of the business.

 

[SureValla]

anyone else notice on the blog post the following:

"The first, which will allow you to get a better spot in the queue, is to visit your local Tesla store when it opens on March 31st."

Italics and bold added by me

 

[gregincal]

In many states the Tesla stores really are licensed dealerships, if state law allows company owned dealerships (which many do). People tend to conflate authorized dealership with franchised dealership, but the two aren't the same.

 

[tga]

I wouldn't read too much into that, especially given that it says "(Tesla)". In at least some states where it can have a dealership it operates through wholly-owned subsidiaries. All it really "says" is legal separation of the parts of the business.

In many states the Tesla stores really are licensed dealerships, if state law allows company owned dealerships (which many do). People tend to conflate authorized dealership with franchised dealership, but the two aren't the same.

Both good points, although I can't help but wonder why the change from the X docs?

 

[tinm]

FYI I checked with my contacts at Tesla and they say not to worry, this "authorized dealer" language is just a legal term of art, and that there are no plans to change the business model or do dealerships. So, I'm considering this case closed... for now

 

[tga]

FYI I checked with my contacts at Tesla and they say not to worry, this "authorized dealer" language is just a legal term of art, and that there are no plans to change the business model or do dealerships. So, I'm considering this case closed... for now

Great, thanks for checking. There had been talk way back of Tesla moving to franchised dealerships to handle the Model 3 volume. I feared this was the first hint of that.

 

[pvogel]

Great, thanks for checking. There had been talk way back of Tesla moving to franchised dealerships to handle the Model 3 volume. I feared this was the first hint of that.

NO way. The same arguments for NOT having a franchise dealer model with the S and X apply equally to the model 3. No service revenue, dealerships don't know how to sell electric cars because everything is optimized around sales & service of ICE cars, etc.

In some states, Tesla creates a wholly owned subsidiary to act as a Tesla dealer in the state just to comply with that state's laws. The states that only allow FRANCHISE dealers are the ones that are a problem for Tesla.

Peter+