Tesla, Inc. (NASDAQ:TSLA) has ditched refundable $1,000 reservation fees and $2,500 order deposits

Tesla, Inc. (NASDAQ:TSLA) has ditched refundable $1,000 reservation fees and $2,500 order deposits

Tesla, Inc. (NASDAQ:TSLA) has ditched refundable $1,000 reservation fees and $2,500 order deposits

Tesla has ditched refundable $1,000 reservation fees and $2,500 order deposits, which were required to order its cars previously, and instead will now charge a $100 non-refundable order fee, according to updated language on its web site.

The order fee means that Tesla will make money every time a person places an order, even if they decide not to move forward with their purchase — no matter why they decided to bail.

Tesla is also banning customers who return one of their electric vehicles from buying the same trim for a full year. After making a return, a customer will have to either go for an upgrade, a downgrade, or a different model — or they can walk away.

These and other recent price tweaks could help Tesla chase profitability, which the company has promised to achieve in the second half of 2019. But the changes could also drive away prospects who don’t want to pay the higher prices, or cause some customers to delay purchases while they wait for the next batch of tweaks and incentives.

Frost & Sullivan’s Director of Aftersales, Retail & New Mobility Research, Kumar Saha, believes the company has little to lose in changing its prices and policies in this manner.

He explained, “Tesla is building its brand and its manufacturing capabilities in front of everybody’s eyes. They also want to torch the existing automotive retail practice and build it up in [CEO Elon] Musk’s image. Musk loves to go ahead with anything that’s disruptive and goes against the current of automotive retail. Since they are not beholden to dealerships and do not have to adhere to franchise laws like other automakers — there’s no reason why they have to follow a traditional path, either.”

No exchanges

The return policy page on Tesla’ website now cautions buyers:

“Once you have returned your vehicle, the return process is final and may not be cancelled. At this time, we are not able to facilitate vehicle exchanges. If you decide to order another vehicle, you may not order the same trim for a period of 12 months but may order another vehicle in a different trim at any time. However, if you are found to have abused this policy or have acted in bad faith, you will be prohibited from purchasing any vehicle for a period of 12 months.”

The policy does not clearly define what constitutes an abuse of Tesla’s return policy, or an act of bad faith. Tesla did not immediately return a request for comment.

CNBC reviewed correspondence between a recent Tesla buyer and their sales and delivery advisors in Los Angeles to confirm that the new return policy is being enforced. This buyer asked for anonymity to avoid criticism from Tesla fans online.

The buyer claims their $54,000 Model 3 had chipped paint and a partly unpainted wheel well, among other problems. The customer wanted to swap their Model 3 for another one with all the exact same features.

But in a series of calls and emails, Tesla advisors said that they would have to order a lower-end Model 3 for around $39,000 or higher-end version for around $56,000 instead. Or, they could opt for a Tesla Model S or Model X, or a pre-owned vehicle.

One advisor told the customer than a comparable Model 3 would not be available until October 1st. That meant the customer would miss out on getting two years of free supercharging, an incentive Tesla made available in September to spur Model 3 sales.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 240.82.

The projected upper bound is: 280.47.

The projected lower bound is: 244.61.

The projected closing price is: 262.54.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.4309. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 16 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 67.56. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 59 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 143.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 2.220 at 261.970. Volume was 38% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open     High      Low     Close     Volume___
262.500 264.780 260.170 261.970 4,779,043
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 248.29 234.81 255.00
Volatility: 23 49 58
Volume: 7,473,675 6,824,585 9,035,194

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA INC is currently 2.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 27 periods.

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