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Solar Roof, big price increase

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Yeah, I've spent too much time in corporate. My cynicism goes to 11.

Major pricing changes that result in broadcast messages to a ton of in-funnel leads/prospects doesn't happen because of a glitch. It's because some product lead brainstormed the idea; an ops person documented the to-do list; other SMEs assessed risks and opportunities in the plan; some finance person crunched the data in a spreadsheet; and the group decided.... yeah let's do it. And you know they were aware what this would mean to people in the sales funnel who had not yet paid.

I mean look at the emails people are getting. They bothered to retrieve the old contract amount, the new required amount, and sent it to people for acceptance. That's not a glitch (although it won't stop someone from blaming a glitch).

People can debate whether this was meant to be a deliberate email or not sent across all orders not already installed (didn't you or someone say that someone who already had their system installed got the same email? that makes me think there was a mistake made), and I expect the matter will be made clear later this week. However also being Tesla car owners, I can tell you that a number of us here who ordered, paid for and saw on our Account Page FSD was listed, one day saw the notation had disappeared. Caused a lot of commotion as people checked their account, saw it missing and reached out to Tesla about it. From what I understand they were in the process of doing database updates on orders and something got messed up and this info got wiped off some people's account page, mine included. Took them a bit to fix but they did. They never intended to drop the info from these accounts. So stuff happens by accident or whatever sometimes. So just saying.
 
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I thought we agreed that there was a contract already and assumed Tesla was in breach of it. I agree with you there is a real contract in play and disclosures that a reasonable person would consider to be a contract. Even without the $100 deposit, I feel most of the reasonable homeowners affected by this would view themselves as "harmed".

I'm saying that I don't see enough damages for a business lawyer to help with their normal fee structure (~30% vig/contingency). And, I would find it surprising if an arbitrator ruled that Tesla had to either execute the original terms of the agreement; or pay damages for the difference in value between the original cost and the new/updated cost.
If we are agreed that a contract exists and that Tesla breached, there is nothing in contract law that would limit expectation damages based on whether or not a customer has actually paid for the product vs. promising to pay. Whether expectation damages can be ascertained is a legitimate question, but in the event of a breach by one party, the ability to claim damages is in no way impacted by whether or not the payment was made (again, assuming that no payments are actually due.)
 
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I haven't seen these contracts (and I have no interest in seeing one), but apparently there is no specified date for performance. That is, there is nothing to say when Tesla will install the roof. If that is true, then it isn't clear to me how anyone can claim significant expectation damages. And a case can be made that even if Tesla chooses to delay an install at the original price for, say, 10 years, they haven't breached.

Also, IANAL, but I believe that one of the requirements for a valid contract is that both parties are exposed to similar financial pain if they breach the contract. Here, the buyer can cancel the order anytime before the installation and lose $100. Some posts above are suggesting Tesla should be liable for many thousands of dollars if they cancel. This would be a very asymmetric outcome.

Of course, none the above addresses the ethics of the situation.
On the first point (at least in the case of my contract) Tesla provides an "Approximate Installation Start Date" that, at least for us, was 3-6 months. So you are correct that there is not a firm start date. However, I don't believe that would allow Tesla to simply ignore the contract forever. What would be reasonable, I do not know.

On the second point, I disagree. A valid contract absolutely allows for differences in the consequences for breaching. It is common and perfectly reasonable for that to happen. In this case, Tesla may consider the low amount a customer pays to cancel a good way to attract customers who might otherwise have been concerned about laying out a lot of money before construction begins.
 
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So stuff happens by accident or whatever sometimes. So just saying.

To be honest, Tesla probably does need a PR team for situations such as these. Emails went out on Saturday, by Sunday negative press is being written.

It might all be a mistake, but we won't know until the advisors are back in on Monday and people can get a straight answer out of them. But by then the PR damage is already done.
 
To be honest, Tesla probably does need a PR team for situations such as these. Emails went out on Saturday, by Sunday negative press is being written.

It might all be a mistake, but we won't know until the advisors are back in on Monday and people can get a straight answer out of them. But by then the PR damage is already done.
Yeah saw an Electrek article that mentioned TMC posts.
 
The contract is vague on installation timing. It says approximately 7-180 days from date the agreement from signed to start and complete. Mine rose more than 50% for 1 KWh upgrade.

What irritates me the most is them delaying months on a redesign citing "shortage of staff", then sending out the email of the new pricing WITH the redesign/upgrade. This definitely felt like a bait and switch to me. Going with regular solar panels if old contract is not honored.
 
I had same situation - got the email Friday then checked the account last night found out that it's $32K increase!! (From $50K to $82K) but while looking into the new loan agreement, I found out that they charged $16K for roof material and $32K for roof labor!! why I'm paying $48K just to prepare my roof for Solar?? doesn't make sense to go with Solar roof anymore...

I already sent an email to Tesla but don't expect any good news - unless Elon will step in and honor the contract..
 

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If we are agreed that a contract exists and that Tesla breached, there is nothing in contract law that would limit expectation damages based on whether or not a customer has actually paid for the product vs. promising to pay. Whether expectation damages can be ascertained is a legitimate question, but in the event of a breach by one party, the ability to claim damages is in no way impacted by whether or not the payment was made (again, assuming that no payments are actually due.)

Yes, the aggrieved party has the ability to claim whatever damages they want. Assuming Tesla confirms that these emails were not send in error, I am interested to learn if any of the homeowners who were in the sales funnel that had their pricing adjusted will find someone that helps them fight for recovery with the expected damages approach that you outlined.



People can debate whether this was meant to be a deliberate email or not sent across all orders not already installed (didn't you or someone say that someone who already had their system installed got the same email? that makes me think there was a mistake made),

No, I gave an example where a hypothetical homeowner that receives this price adjustment notice would have more clear-cut evidence of damage if work had already begun on their house and then Tesla demanded more money to finish the job. Or if this hypothetical homeowner had already paid the original amount of the contract and is now being asked to pay more funds. Edit: The California State Licensing Board advises homeowners to never pay more than 10% or $1,000 up front on any project. So, please do not consider paying a bunch of cash up front as a smart idea.

For example, wjgjr has set his line with a signed contract. So I believe, he would be ok with qualified leads getting this email (interested party who haven't signed a contract yet). But I set my line where on-site work has commenced on a project.

I hope you're right that this is all just a weird fluke that emails went out to people deep in the sales funnel with a pricing adjustment. As with all things it's not always black and white with complicated issues. But individually we all have to draw a line someplace to make sense of things through our own perspective haha.

I think people would have understood this better if Tesla communicated more clearly. The "Solar Roof Complexity" page just kind of vaguely defines the slope and obstructions as "few, more, many". It makes it kind of subjective and naturally a significant pain point due to the drastic price increases involved. I guess I got lucky when I first spoke with Tesla. Not only were they unable to do a partial home backup, they told me my roof was too complex and told me to find another installer. I prefer that type of experience instead of them stringing me along and blasting me with a last minute change.
 
My price hasn’t changed, at least not yet. I’ve already had an on-site inspection and am finalizing details before scheduling install, so I cant imagine how they could justify changing my price now.

Are the folks who’ve received the price increase farther back in the process (ie pre-inspection)?
 
In my opinion tesla is utilizing the clause for the location. They clearly came out with a new tool indicating roof complexity when signing up. After reviewing orders previously placed and applying the new tool for each location the estimate goes up due to installation complexity. As with all contracts for construction “unforeseen” items are almost always present.
Of all whom signed contracts how many of you answered “yes” to the question that was something like “If additional reasonable repairs or costs are encountered will “you” be able to move forward?
I’m in no way defending Tesla here just pointing out that litigation most likely will be thrown out. Just my .02 cents.
 
Unless there has been a change (since the last solar roof agreement I signed in May, 2020,) Tesla does not use that SEIA form, but it is a similar (possibly identical) set of disclosures organized in another way. Of course, they note the disclosures are not a substitute for the contract. The contract is actually relatively short, and, as I noted in one of these threads, does only appear to provide an out for Tesla in case of "unforeseen conditions at the installation location" when there are no other changes to the design being made, and that seems not to apply here. That said, it was mentioned that Tesla might have inserted new provisions about pricing changes, but I have not seen that language posted yet.

I agree that some of Tesla's business practices are kind of questionable. When they were a smaller company, or even just when the solar division was smaller, they could probably get away with it. Additionally, in the past, they tended to resolve more issues in favor of the customer, including letting customers choose between old and new pricing and absorbing costs for some extras discovered after the agreement was signed (even when they could rely on the "unforeseen conditions" clause.) Now, however, it seems like they are taking a much harder line on a lot of things. And, while that is their choice as a company, they need to make sure that their contracts match their actions or there may be a point where this creates a legal headache.
My contract is roughly 23 pages long. The only mention of SEIA is below.
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Can you show an image of your roof complexity?
My roof is hardly complex I imagine compared to other houses. Single story and based on the page Tesla provided on roof complexity, it should fall under "simple" category, but the new pricing labeled it "complex".


..Reuploading again because site seems to be having issues displaying pictures.
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If the subcontractors increased their installation prices, would Tesla be legally authorized to change their contracts with their customers. Did they include a fine Print in their contract with customers to let them change and increase the price at any time for any reason?