Telsa 3 News: What $1000 deposit gets you from Tesla

What $1000 deposit gets you from Tesla 

Tesla motors on Thursday unveiled their new electronic car model "3".Tesla CEO Elon Musk assured that the car will seat about five people, andreach the highest safety marks, along with achieving at least 210 miles of coverage in a single charge.

The vehicle is estimated to hit a target of zero to 60 miles per hour in about less than 6 seconds.The Model 3 will be priced at $35,000. This is the first time that Tesla are attempting to lure an average car buyer not just the wealthy class but even the average middle-class car enthusiast into a fully electric-car experience.

Customers can now make reservations paying a refundable1000 US$. About 135,000 people have already pre-booked their cars estimated for delivery in 2017. Putting down 1000$ as a deposit, now this is refundable can actually reserve your car whether you get one definitely or not. Tesla will use your deposits for any use it likes and will refund it at any time people ask for it. As it says in the email it is not held separately or in an escrow or trust account. A negative operating cash flow of $524 million and capital expenditures of $1.635 million in 2015 had the company use over $2.1 billion in cash last year. This was partially an offset by $569 million in cash received for its financed cars but it did need to raise over $1 billion through increased debt and selling stock saw its cash balance decline by over $700 million to $1.2 billion.

The company expects to generate net cash in 2016 but this will require it to tap its $1 billion credit line of which it has $865 million remaining. It can also use part of its $1.2 billion in cash and receiving at least $232 million in Model 3 deposits and growing certainly helps. People might not really go into worries about getting their 1000$ deposit fee back in case of missing to procure one unit of Tesla 3 themselves. People who fancy upgrades can also get their car prices hiked up with Elon Musk even tweeting that the new car might come with some options to mix in-to costing another additional 7,000$.

Hence even if you get your car assurance honored or not, your money with Tesla is pretty much sure since you can get the 1000$ credit anytime. Although people cannot really experience a test ride before ordering one, people are surely committing to their decision to pre-order one. But since the delivery times are somewhere in 2017 and not precisely 2017 itself, lots of cars might have come into markets and people are hence held back by this thought.