Breach of contract is pretty easy to prove if you have the documentation.
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Solar Roof, big price increase
- Thread starter nicholb
- Start date
Cirrus MS100D
Member
I am *not* wading into the legality or morality of the situation, but just noting that the price of steel (along with SO many building materials) has literally doubled and hit new all-time highs not seen since 2008. Didn't Tesla recently switch to using steel "dummy" tiles from glass recently?
"In the past five months the average price for hot-rolled coil has jumped by two-and-a-half times, from $440/ton to nearly $1,100/ton. For comparison, the prior peak for hot-rolled was $1,070/ton in July 2008, which is equivalent to $1,286 in 2021 dollars. When the economic bubble burst with the onset of the Great Recession that fall, steel prices nosedived along with the rest of the economy, bottoming out 11 months later at just $380/ton."
www.thefabricator.com
"In the past five months the average price for hot-rolled coil has jumped by two-and-a-half times, from $440/ton to nearly $1,100/ton. For comparison, the prior peak for hot-rolled was $1,070/ton in July 2008, which is equivalent to $1,286 in 2021 dollars. When the economic bubble burst with the onset of the Great Recession that fall, steel prices nosedived along with the rest of the economy, bottoming out 11 months later at just $380/ton."
Steel prices reach levels not seen since 2008
Hot-rolled steel prices have reached levels not seen since in 13 years. Pricing is expected to fall below the $1,000/ton mark, but that might not be until late 2021. Now steel buyers are left with some important questions.
www.thefabricator.com
That’s a good point, as unhappy as I am about this situation.I am *not* wading into the legality or morality of the situation, but just noting that the price of steel (along with SO many building materials) has literally doubled and hit new all-time highs not seen since 2008. Didn't Tesla recently switch to using steel "dummy" tiles from glass recently?
"In the past five months the average price for hot-rolled coil has jumped by two-and-a-half times, from $440/ton to nearly $1,100/ton. For comparison, the prior peak for hot-rolled was $1,070/ton in July 2008, which is equivalent to $1,286 in 2021 dollars. When the economic bubble burst with the onset of the Great Recession that fall, steel prices nosedived along with the rest of the economy, bottoming out 11 months later at just $380/ton."
Steel prices reach levels not seen since 2008
Hot-rolled steel prices have reached levels not seen since in 13 years. Pricing is expected to fall below the $1,000/ton mark, but that might not be until late 2021. Now steel buyers are left with some important questions.
I assume he price of normal roof installations has also increased a lot lately. Probably not ~50% though!
phsoccer
Member
Something new I just noticed. My house was already permitted, we had the inspection on Friday, and when I went to the Tesla page that day it was on Installation. I just checked my Tesla page now and it has gone back to "Review and Accept Your Design" and does not list the roof as permitted. Nothing has changed, so why is it not still permitted?
Attachments
It is a good point in favor of raising the price for those without a contract, but for those with a contract, Tesla was perfectly aware of the price of steel at the time and was perfectly capable of procuring the material when the contract was signed or of hedging against increases. If they did not, that is on them, assuming the contract does not provide otherwise, which I know is itself under debate. (If instead they decided to invest in bitcoin, they could also use those profits to cover the costs of the steel they did not buy at the time.)
This happened to me as well, and is probably just the way their system runs: acceptance of design/payment, then permitting. My permitting was done last June and I was just waiting for scheduling the install. Seems their system wasn't expecting them to change pricing like this after signed agreements and permitting either. Go figure
Personally, I think if you are reliant on commodities and you haven't hedged your future contracts, you deserve what you get.
I would also observe that the steel and lumber price rises have been broadly telegraphed for a long time. That they have risen should not been unexpected to anyone, but especially not to Tesla.
Whether Tesla is doing this to flush the customer queue, or to make even more money, or just because they can, I have no insights.
All the best,
BG
I would also observe that the steel and lumber price rises have been broadly telegraphed for a long time. That they have risen should not been unexpected to anyone, but especially not to Tesla.
Whether Tesla is doing this to flush the customer queue, or to make even more money, or just because they can, I have no insights.
All the best,
BG
Mine went from $130k to 180k, Signed original contract w/deposit 7/5/20. Reconfirmed price Last week! It's been 9 months and just got to the "scheduling Phase" (all permits/designs approved). Now this? system is 22.2Kw w/ 4 powerwalls. so not No but Hell No! Tried contacting my PM... Voice mail full, no return email... typical Tesla support methodology.
A class action lawyer would have fun with this. And no, contrary to what someone said above, it's not any kind of challenge or cost for the plaintiffs.
I haven't gone through a solar purchase with Tesla, after you sign do they provide you with a copy of the contract that has been signed by Tesla? I've always wondered that if in situations like this the company won't actually sign the contract on their side until they are ready to commit, but they have your signature to hold you to it if they want to.
This is just appalling and outrageous. I love most things Tesla does, but that's just a terrible business behavior. I just had over 40% price increase for no reason. I even had Tesla surveyors come twice to inspect everything in person, so there were no unforeseen issues. My contract was signed and permit approved, and install has been already scheduled and now THIS!
Vendors always have an opportunity to hedge against materials' price increases. That includes buying futures contracts for materials delivery at a future date. Signed contracts gave Tesla an opportunity to hedge. The damage is huge, because as customers, we could have installed another roof with solar panels at the time, before the materials scarcity manifested itself.
I very much hope they change their mind and honor pricing for signed contracts. I simply cannot imagine Elon behave in any other way - it just does not compute.
Vendors always have an opportunity to hedge against materials' price increases. That includes buying futures contracts for materials delivery at a future date. Signed contracts gave Tesla an opportunity to hedge. The damage is huge, because as customers, we could have installed another roof with solar panels at the time, before the materials scarcity manifested itself.
I very much hope they change their mind and honor pricing for signed contracts. I simply cannot imagine Elon behave in any other way - it just does not compute.
My contract is signed by both parties. I also haven’t seen an increase yet (fingers crossed)
Yea, I'm not going to accept an extra $50k charge soon. $130k I can live with, but $180k puts my ROI into 2080.... I'm still hoping this is a glitch!? Guess I'll go to the back of the line... it's only been 9 months since the original order....
Silicon Desert
Well-Known Member
I wonder how the contract has changed since Tesla acquired Solar City. When I looked at them 4 years ago, the contract was almost 37 pages long and they wanted to also keep my tax rebates. I quickly showed them the door and went with a competitor.
Just got a call back from my Tesla PM (Jason). He told me no, this is not a glitch and everyone with a contract is getting a new price/cost. My options where to accept the new price or cancel and get my deposit back. I'm going with option 3... News, AG, and I'll lock into a class action....
Yes, we too signed an agreement in Sept 2020 for a Solar Roof. Solar roof was to be $38K pre-rebate. Now $55K for the same thing. That's a 44% increase! Will not go forward with this on principle. No warning, just got an email to 'Review and Accept Your Design'. Crazy, and terrible way to treat customers. Now they have to come and haul away the pallets on my driveway. Have been a very happy MS customer, but the roof process has been awful.
I’m 9 days out to the start of my new Tesla solar v3 roof. Its been well over a year since the since we got in contract for the 76k 14.3kw 3 battery system. My wife and I have been saving and could be more excited for our shinny new power plant. But that obviously all changed today. The project start date is now been push back a week after and has a 98k price tag! We already rented a house for the contracted week of construction for our family. I honestly don’t even know where to start how disappointed I truly am. My wife and I are meeting with our attorney tomorrow, but I doubt any legal cost out going to offset my damages. This just sucks.
Dang that sucks.... I was looking forward to seeing your install after you posted your thread about why you were doing the project. I feel like PV+ESS is more often a giant headache than it is a smooth sailing process. The adversity is almost worth the reward at the end (almost... there is way too much adversity lol).
I hope you can get some form of recourse; in a best case Tesla will shape up and put you back on track with the previously agreed terms.
I hear ya... I lost a year of my life fighting with PG&E to get my PV+ESS. I don't really think it's worth it considering how much personal time I lost just because I didn't want PG&E to win haha. PS. PG&E sucks. I just wonder if this price screw-over is going to cause an equal amount of hatred to manifest between prospective Solar Roof buyers and Tesla.
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