What happens to my deposit and down payment if Tesla runs out of cash?

[Uncle Paul]

OP is just going through a normal evaluation we all do before "pulling the trigger"

Putting down a financial committment obligates both parties in such a contract. Buyer agrees to a certain price and that they will follow through and pay the balance on or before delivery. Company agrees to produce and deliver the car as specified for the agreed price.

If the company goes bankrupt prior to delivery, the court handling the bankruptcy will determine what, if anything happens to the earnest money deposit.

Many things may happen between placing the order and accepting delivery. The purpose of the deposit is to fix in time the details of the agreement so both parties know what their obligations are going forward.

Tesla has a fair system that seems to offer protections and obligations of both buyer and seller. Like most things in life, it is also a bit of a leap of faith.

Hundreds of thousands have gone before, and the system seems to be working pretty well.

 

[mos6507]

all you need to know is Tesla rejected a Volkswagen buyout at 420 per share.

VW was interested in participating in a take-private plan, not to buy them out all by themselves.

Tesla is gonna die so I won’t buy their cars. No one buys Tesla cars so they die.

Nobody said starting a car company from scratch would be easy. Lucid Air, Byton, etc... all have to face the same hurdles. Tesla isn't owed anything by anybody. It has to earn consumer-confidence. High debt-loads, executive turnover, QC issues, CEO meltdowns, all of that work against consumer-confidence.

Obviously it's got early-adopter fanbois in the tank, but keyboard warriors only take it so far.

 

[MXWing]

VW was interested in participating in a take-private plan, not to buy them out all by themselves.



Nobody said starting a car company from scratch would be easy. Lucid Air, Byton, etc... all have to face the same hurdles. Tesla isn't owed anything by anybody. It has to earn consumer-confidence. High debt-loads, executive turnover, QC issues, CEO meltdowns, all of that work against consumer-confidence.

Obviously it's got early-adopter fanbois in the tank, but keyboard warriors only take it so far.

VW wasn't coming up with all 100 billion because Elon and myself were not going to sell our shares. Though I guess @brooklynrab could have bought out my shares if he just has 40 of his own.

You can not compare Lucid and Tesla by any means whatsoever. It's like comparing a high school film to a AAA Avengers movie. Lucid has ZERO cars on the road. Tesla has had Model S's get built and their warranties expire because they have been on the road for so long. That is a sign of longevity.

Finance people know you need to spend money to make money. Tesla will absolutely have a top and bottom line beat even if not positive in Q3 and Q4. They are in the best position they have ever been.

Elon is essential to Tesla, but Tesla has 30,000 employees.

If a rogue AI takes over a Boring Machine and buries Musk under 10 tons of rubble, you think the assembly lines shut off instantly?

No, the other 29,999 do whatever they need to do every single day.

GM already bankrupted themselves once - how often do buyers question their Silverado purchase based on a potential 2nd bankruptcy?

Fanbois is a label for people who want to argue *sugar* like can Superman beat Thor on the internet?

Putting cars that average $75K in your garage is a substantial purchase decision that requires a lot of acumen beyond your "fanboi" arguments. Unless that's just 1/40th of your annual income like some of the high rollers here.

 

[Electroman]

I always wondered - Can Superman beat Thor ? I say he cannot.

what do you say?

 

[MXWing]

I always wondered - Can Superman beat Thor ? I say he cannot.

what do you say?

Not a chance. Assuming we throw away the kryptonite hammer idea which would be instant kill - Superman just hasn’t faced the same level of galactic sized opposition

Superman is too big a fish in a small pond. Thor takes it by having no weaknesses that Superman can exploit, at least equal powers and overall experience.

All this is on topic because every other EV has their own proverbial kryptonite.

Lack of a frictionless supercharging network!

 

[RubberToe]

I am ... a finance guy....

5,000 cars per week * $60,000 ASP per car = $300,000,000 in weekly gross income.

Chew on that for a bit and get back to me if you think Tesla will have any issues getting you your $1,000 refundable deposit back Mr. Finance Guy...

RT

 

[cpa]

Only up to 37% of $1000 though as that is the OPs tax bracket?

Yeah, I was just trying to show a silver lining to this doom and gloom. Droll, I know.