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Mystery Modifications to Tesla's Policies

Mystery Modifications to Tesla's Policies
by Gill D on October 20, 2020

Tesla has been making some quiet changes to their policies. The EV company recently removed their risky return policy where Tesla owners could return their new car within 7 days or before exceeding 1,000 miles – whichever came first. However, this policy has now been revoked.

Previously, Tesla used this as a daring marketing strategy and their website used to include a bold statement describing this policy: “We are confident that you will feel great about your new vehicle, and so are giving you time to experience and enjoy your new Tesla,” it said, “if you are unhappy with your vehicle, you may return it to us within seven (7) calendar days.”

The webpage that used to contain that information now redirects to a general support page that doesn’t include anything about their initial return policy.

It was just a few months back when Musk used Twitter to comment on Tesla’s returns policy, which seemed to be a big selling point in the past. When a Twitter user mentioned that he loves the Cybertruck, but his partner did not, Musk said:

“You may return the vehicle for a full refund in the unlikely event that it causes domestic discord.

Tesla CEO, Elon Musk promoted this 7 day return as an indicator about Tesla’s high customer satisfaction rates. If you have such a brave returns policy, you obviously aren’t expecting a high return rate and the company was seemingly convinced that new Tesla owners wouldn’t utilize the clause. Buying a Tesla car is unlike any other car manufacturer. It’s more like buying an electronic device. You order it online, add your customizations, and wait to have it delivered to your door, and if you’re not happy with the purchase, you can simply return it within a few days.

There has been no clarification from the EV pioneer as to why the returns policy has vanished from its website or whether there are any circumstances that may still qualify for a full or partial refund. Without Tesla’s PR department, there’s no direct contact to clarify these enquiries, which makes it somewhat harder to explain.

And it’s not just the returns policy that’s disappeared. The electric vehicle manufacturer has also  cut its used car warranty. Seeing as though the critical 3rd quarter financial report is due soon, these changes could be a way to tighten the belt and lower the company’s potential exposure to risk. In the past, Tesla offered a 2 – 4 year warranty on its pre owned Model S and X electric vehicles, however this warranty has now been reduced to a 1 year or 10,000 miles and replaces the original warranty policy, which was beneficial for people buying recently used cars from Tesla.

So, if you’re looking for a pre owned 2016 Tesla, you may have a problem now with warranty protections. It’s highly likely that this modification will deter consumers from purchasing used vehicles and perhaps this is what Tesla is aiming for in order to increase its sales in its new cars.

So, with the recent Tesla news of an evaporated returns policy and reduced used car warranty, there’s clearly some changes afoot that are not yet transparent to the market. Tesla will be reporting its 3rd quarter financial status later this week and all eyes are on its production and delivery numbers. Earlier in the month, Tesla said its deliveries were at around the 139,300 mark, which is a record for this time of year and the third successive quarter that has exceeded expectations in its delivery numbers.

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