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Tesla drops deposit fee to $ 100



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 Tesla Deposit

Published on October 18, 2019 |
by Johnna Crider

18. October 2019 by Johnna Crider


  Red Model 3 Tesla Charging Station JRR | CleanTechnica

Tesla has lowered the deposit fee from $ 2,500 to $ 100. It is also important to note that the previous $ 1,000 and $ 2,500 deposit fees have been fully reimbursed, but the $ 100 deposit is non-refundable.

CNBC states, "The order fee means that Tesla earns money each time a person places an order, even if you choose not to proceed with your purchase – regardless of why they choose to pay a deposit. "(Yes, that's the definition of a non-refundable fee.)

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To be honest, I do not think that's a bad thing , Let's look at it from the perspective of a company. A company should fulfill an important task: to succeed. For it to thrive, it has to survive. To do this, the company needs money to build itself, develop products, sell and so on. Fully repayable deposits can send false signals, raise false expectations, and make it difficult to operate Tesla. A non-refundable deposit (as used by Tesla in the past), although much smaller (formerly much higher), is an actual obligation. Not so many people will give away $ 100, so they will not place an order without making a real commitment or planning to buy the product.

Let me explain it in a different way. I will take myself as an example. I'm a wire artist, someone who makes wire jewelry, be it copper, silver, or gold. These metals can be very expensive, especially gold. Then add the cost of the mineral or gemstone – you will not be able to see the sales figures that Tesla sees, but depending on what someone ordered, it could be a handmade piece of jewelry worth $ 400.

$ 400 is a lot for artists like me, and at least 25% of that is the base cost – just the material cost. Then there is the work that is to make the piece and send it. At Tesla, employees have to be paid.

When a customer places an order and then changes his mind, a company must put a plan into action. Personally, I charge in advance the full price for my work and inform my customers that they are not recoverable due to the material costs.

Let's take another look at this from Tesla's point of view. The company has thousands of customers every week. Imagine 10 out of every 1,000 orders. I am not sure what the exact number is. I only appreciate it here. So, if 10 out of every 1,000 are canceled and they pay $ 2,500, that could be $ 25,000 in cash, which Tesla would only lose by returning deposits. [ Editor's note: With my new Tesla Referral Code, 8 people have completed a Tesla order and 3 placed an order and canceled it. Another 7 have placed an order and must still receive the vehicle (and thus complete the order) or cancel. This is certainly not a scientific sample, just a data point. This corresponds to a cancellation rate of 27%. If this is not quite up to standard, it must be quite a challenge for Tesla to make it when production is so close to consumer demand.


The best way to prevent these types of losses is to make them non-recoverable. To do this, Tesla had to lower her. Remember, Tesla needs to thrive – not just survive – but thrive. Every entrepreneur's goal is to succeed, but people think that Tesla (and other companies) must be bad because they make a lot of money. Some do not seem to care. I see people all the time asking Elon to give them a Tesla. Otherwise, Tesla would not make money.

The deposit of just $ 100 makes it easier to get started buying a Tesla. $ 100 is still a lot for an average American who has two to three part-time jobs and suppresses a sideline to survive – but far more accessible than $ 2,500!

Photo of JRR, CleanTechnica

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Tags: Tesla, Tesla financials, Tesla Model 3

About the Author Johnna Crider Johnna Crider is a baton Rouge artist, gemstone and mineral collector and Tesla shareholder, who believes in Elon Musk and Tesla. Elon Musk advised her to believe in the good in 2018.

Tesla is one of the many good things to believe in. You can find Johnna on Twitter




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