Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Tesla Model 3 Reservation Agreement

This site may earn commission on affiliate links.
I remember in the spring of 2008, I was looking for an electric car, hoping there was something out there better than a Nissan leaf, and I came across a website for a car company name Tesla, and a new model coming out, called the Model S, which I could reserve for $5000. I was so taken by the car that, although I had never heard of the company, never knew anyone else who had ever heard of the company, and the only press was about the fact that the company was about to go bankrupt, I signed the agreement, and I put down my deposit. It specifically said in the agreement that, if the company went bankrupt, I would lose my deposit. I must say, remembering that makes it quite easy to throw down a $1000 deposit for model three next week. See you then.
 
I remember in the spring of 2008, I was looking for an electric car, hoping there was something out there better than a Nissan leaf, and I came across a website for a car company name Tesla, and a new model coming out, called the Model S, which I could reserve for $5000. I was so taken by the car that, although I had never heard of the company, never knew anyone else who had ever heard of the company, and the only press was about the fact that the company was about to go bankrupt, I signed the agreement, and I put down my deposit. It specifically said in the agreement that, if the company went bankrupt, I would lose my deposit. I must say, remembering that makes it quite easy to throw down a $1000 deposit for model three next week. See you then.
You sir, have just created another Tesla customer, thank you for the impressive insight!
 
Woo wait a minute. If tesla goes out of business i will lose my deposit? That changes thing. I was under the impression that deposits are company debt and they must pay that back before their share holders. I hope this is not the case. I am not saying tesla will go out of business, but it is risky when some money is on the line.
 
Woo wait a minute. If tesla goes out of business i will lose my deposit? That changes thing. I was under the impression that deposits are company debt and they must pay that back before their share holders. I hope this is not the case. I am not saying tesla will go out of business, but it is risky when some money is on the line.

From my understanding; yes it is company debt and they must pay that back before their share holders. But it may (probably) be lost if they go bankrupt. So yes, there are some risk involved, but I do not see any signs of that yet. If you don't trust Tesla to not go backrupt, then do not put in any reservations until you feel it is safe.
 
Woo wait a minute. If tesla goes out of business i will lose my deposit? That changes thing. I was under the impression that deposits are company debt and they must pay that back before their share holders. I hope this is not the case. I am not saying tesla will go out of business, but it is risky when some money is on the line.

Well, you wouldn't be alone. Some find comfort in the knowledge that they won't be going down with the ship, alone. :p Of course, by the time anyone sees their car in the flesh, they won't have missed that $1k.
 
Here's a question I've never seen answered, and it runs contrary to what Tesla "knows" about me (that I want my Model 3 as soon as possible). Has anybody seen anything about the need to purchase as soon as your name bubbles up? What if I wish to wait for six or 12 months after my name pops up?
 
From my understanding; yes it is company debt and they must pay that back before their share holders. But it may (probably) be lost if they go bankrupt. So yes, there are some risk involved, but I do not see any signs of that yet. If you don't trust Tesla to not go backrupt, then do not put in any reservations until you feel it is safe.

Well normally in a bankruptcy case, the debt holder becomes the new owner of the company that comes out of bankruptcy. The old shareholder loses out. If depositor are considered debt holder, then i am ok with gaining stock of the new company if they go under. I just want to make sure i am not leaving empty handed if tesla goes under.