Model 3 savings account option in addition to $1000 deposit..

[DQ10]

I'd like to see the option of adding money to my $1000 deposit for the following reasons:
1. I won't have to open another bank account.
2. I'd rather see Tesla use my money than a bank.
3. I'd be more inclined to save more towards the model 3.

 

[BluestarE3]

You mean like the old department store layaway plans that have since fallen out of favor?

 

[cmorgan]

I'd like to see the option of adding money to my $1000 deposit for the following reasons:
1. I won't have to open another bank account.
2. I'd rather see Tesla use my money than a bank.
3. I'd be more inclined to save more towards the model 3.

Could always buy some stock in the company. I did that before I was ready to order a model s and still have some amount of stock that I feel is likely to appreciate in value over the next couple of years if the company does well.

 

[DQ10]

Pretty much..I'm going to sell off my motorcycle, a car and a few other things over the next year or two and I want the money to go to a dedicated model 3 account. I'm not fond of another bank account or safety deposit box and I have no problem letting Tesla keep it for me.

 

[DQ10]

Could always buy some stock in the company. I did that before I was ready to order a model s and still have some amount of stock that I feel is likely to appreciate in value over the next couple of years if the company does well.

Not a bad idea but I've already got some stock and I'm staying long..a dedicated account would keep me more focused on paying it off as soon as possible and I could add small amounts of cash more easily.

 

[EinSV]

I'd like to see the option of adding money to my $1000 deposit for the following reasons:
1. I won't have to open another bank account.
2. I'd rather see Tesla use my money than a bank.
3. I'd be more inclined to save more towards the model 3.

Interesting idea -- especially since interest rates at a bank are basically zero.

 

[DQ10]

Interesting idea -- especially since interest rates at a bank are basically zero.

Exactly, there would be no interest to speak of and I'd be helping a company I believe in.

 

[GoTslaGo]

You could tweet Elon, I'm sure he'd get the finance guys to work with you.

Now just don't ask me how to tweet, I'm a Luddite.

 

[Ryan MF]

Really interesting idea. It's not often you buy a product that you won't collect for two years.

 

[SageBrush]

Exactly, there would be no interest to speak of and I'd be helping a company I believe in.

Well ... you could reserve another car every $1000 saved ... (not really serious)

OTOH, I'm actually surprised that Tesla does not sell corporate bonds

 

[DQ10]

Well ... you could reserve another car every $1000 saved ... (not really serious)

OTOH, I'm actually surprised that Tesla does not sell corporate bonds

Actually reserved two..Looks like my daughter, who just bought a new Prius will be buying the second one and my wife wants the other...I think the two of them can flip a coin..

 

[jsanford]

I have a savings account at my credit union, with an alert when it reaches a certain balance, so I can then roll it into a 6-month CD, earn more interest, and "lock up" the funds.

 

[djplong]

I have my brokerage account pulling $75 from my credit union checking account 4x/month.

 

[Booga]

This would just add complexity at the wrong point for the company. They have many challenges to focus on, and running a bank account isn't one of them. If you want to, you can try buying some of their debt issuances to get similar exposure and actually earn something during that time on it. Otherwise, just get a savings account wherever you already bank, and toss it in there. The American Express Personal Savings bank is pretty good too, and gets me close to 1% today.

 

[Weezer Fan]

The $1000 is a deposit for a spot in line. It is not a contract to buy the car. I think it would be difficult for Tesla to accept additional moneies with out a purchase contract.

 

[DQ10]

This would just add complexity at the wrong point for the company. They have many challenges to focus on, and running a bank account isn't one of them. If you want to, you can try buying some of their debt issuances to get similar exposure and actually earn something during that time on it. Otherwise, just get a savings account wherever you already bank, and toss it in there. The American Express Personal Savings bank is pretty good too, and gets me close to 1% today.

I think it would be relatively easy to set up such an account especially when you figure in the benefits for tesla. It could bring in billions of working capital, at virtually no cost, without diluting existing shares, to help tesla meet this new unexpected demand....DQ10 OUT....

 

[hdgmedic]

Buy stock in Ford. Let their dividends help pay for your new ride!

 

[wbrumfiel]

So is this $ you are putting into Tesla 100% refundable like the deposit? If so, they wouldn't really benefit much on it as you can pull it out at any time. Much like the $1000 deposits they can't go crazy with them as they could be called at any time and I'm sure a % of them will

 

[TwoM3's]

I like the idea. Everything I've read says Tesla was going to need to borrow more money to ramp up production. They might as well borrow it from those of us who have committed to their product.

 

[ttupper92618]

I like the sentiment, but if Tesla needs additional investment to bring the car to market, any money they collect from you as part of an early order would be little more than an encumberance on future earnings. That is, rather than being a cost in terms of infrastructure that can be depreciated and amortized, it would I THINK wind up being more of an inventory related charge. It would not be an operational advantage I believe because every dollar collected now would be almost entirely offset by a guaranteed future cost, and therefore without additional conventional funding, this would devolve into something quite like a ponzi where future orders would be required to deliver those previously made. Second, it would amount to an interest free loan to Tesla, and one they are not obligated to repay if the worst should transpire. You would be in the position of another creditor and like the others, you would potentially be in a position of receiving pennies on the dollar in the case of insolvency.

If Tesla winds up needing to raise capital (and I'm betting they will), then they will need to do it conventionally. It's not going to happen from allowing customers to prepay for their cars. If they did that, I think it would send a very bad message.