I will be filing a dispute as afforded in the "Agreement to Arbitrate" clause in the Order Agreement, and will take it further to arbitration if necessary. I've copied the text from my dispute letter below, if anyone else would like to use it and/or comment on it. I've redacted personal information as well as my "Desired Resolution" section. From some of the comments above, it looks like asking for the AWD base price at the time of order and keeping options pricing is viable.
I think this is the best course of action for the time being. We should keep each other updated on this thread about how disputes are going, and can organize a more coordinated effort if things go poorly and there are enough people affected.
Background
The Tesla “Model Y” vehicle was officially unveiled on March 14, 2019. Four variants of the vehicle were announced (see attachment 1), two rear-wheel drive (RWD) variants; “Standard Range” and “Long Range” (LRRWD), and two all-wheel drive variants; “Dual Motor AWD” and “Performance”. Online ordering was opened the same day for all but the “Standard Range” variant, with deliveries slated to begin in “Fall 2020”. Placing an order required making a refundable $2500 deposit.
I placed an order for the LRRWD on xxxxxxx, 2019 and was issued an order number xxxxxxxxxxx. Selected options and their associated pricing for my order were as follows:
- Base Price: $48,000
- Paint: Solid Black ($0)
- Wheels: 19” “Gemini” ($0)
- Interior: All Black ($0)
- Seating Layout: 5-Seat ($0)
- Full Self-Driving Capability ($5,000)
- Total Price: $53,000
Upon placing the order, Tesla emailed me a “Motor Vehicle Order Agreement” (“the agreement”) (see attachment 2). Following this email, I received no other correspondence from Tesla regarding my order until December 8, 2021, at which time I received an email stating: “We’d like to help you update your configuration, as we do not build the configuration you originally selected.” “If we do not hear from you by December 16, 2021, we will assume that you no longer wish to purchase a vehicle. We will automatically cancel your order and refund your order deposit.” (see attachment 3).
Dispute
1. By indicating their intent to cancel my order on December 16, 2021 if I do not elect to change my configuration, Tesla is violating the agreement entered into on xxxxxxxxx, 2019. Specifically, the agreement states that “We may also cancel your pre-order and refund your Pre-Order Payment if we discontinue a product, feature or option after the time you place your pre-order”. Tesla is not discontinuing the LRRWD, as the term “discontinue” specifically implies that Tesla produced the product and then ceased production. Tesla never produced the LRRWD.
2. Tesla acted in bad faith by failing to contact me upon deciding not to produce the LRRWD, while the price of options and alternative variants continued to rise.
- Tesla first indicated that they did not intend to produce the LRRWD in January 2020, when the ability to order the LRRWD variant was removed from their website. Tesla failed to contact pre-existing LRRWD order holders when this change was made.
- Tesla CEO Elon Musk publicly indicated that the LRRWD would not be produced on February 22, 2021, in a tweet stating “We have too much product complexity already” in response to a question regarding the status of LRRWD production (see attachment 4). Tesla again failed to contact pre-existing LRRWD order holders.
3. Tesla acted in bad faith by not affording LRRWD order holders the only tangible purposes of a pre-order by not honoring options pricing or order priority in their request to “update” order configurations under threat of order cancellation.
- The first tangible purpose of a pre-order is to lock-in options pricing offered at the time of the order. This premise was confirmed specifically and publicly by Tesla CEO Elon Musk on July 16, 2019 when he stated “As mentioned earlier this year, cost of the Tesla FSD option will increase every few months. Those who buy it earlier will see the benefit.” (see attachment 5). Elon Musk regularly and publicly announced upcoming increases in options pricing, with the intent of benefitting potential customers by enabling them to strategically place orders before a price increase.
- The second tangible purpose of a pre-order is to enter the cue of orders to ensure the earliest delivery date possible. “Updating my configuration” to a different variant, as is being requested by Tesla under threat of order cancellation, will result in being moved to the end of the current order cue.
- By not honoring options pricing or order priority in their request to “update” my order configuration, Tesla is offering a hollow choice. “Updating” the configuration is the same as placing a new order in this case.
