A week before CEO Elon Musk is due to admit his Model 3 production numbers – will he or won’t he hit 5,000 units a week – Tesla is sending out emails to all Model 3 reservation holders in the US and Canada explaining that they need to pay $2,500 to confirm their order online or lose it.
Reservation holders began paying $1,000 deposits when CEO Elon Musk first revealed the car in March 2016
As Bloomberg notes, the email also invites recipients to use online design studio to select options and configure their Model 3, and once reservations customize their car and place order, Tesla will provide an estimated delivery date, and the customer pays the rest owed to the company at the time of delivery.
While Tesla stocks have risen in the last day or two, bonds have not and are down again today as perhaps fears that Tesla needs cashflow – why demand the $2500 now? – may have spooked them…
Or maybe bondholders are less willing to give Musk yet another benefit of the doubt that he will achieve what he constantly promises he will.