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Details Behind the Tesla Model 3 Reservation Agreement
The Tesla Model 3 Reservation Agreement is available at the company website. It makes it clear that people who reserve a Model 3 are not buying a car. They are reserving a ride on the road to the future.
Prospective Model 3 reservation holders will need to agree to the Tesla Model 3 Reservation Agreement come Thursday, regardless of whether they plan on placing a deposit in stores or online later in the evening. That agreement will then be submitted to the company along with your deposit. The one page document is written in standard English rather than impenetrable legalese, so congratulations to Tesla for doing that. Here are a couple of significant points contained in the agreement you should be aware of.
The Agreement is not a sales contract
The Model 3 Reservation Agreement makes it clear that it is not a sales contract. It is nothing more than an opportunity to enter into a sales contract at some point in the future. It says the reservation fee, which is $1,000 in the United States, is fully refundable if the prospective purchaser decides to cancel or abandon the reservation. It also says Tesla may “decline to maintain you as a reservation holder.” You may want to refrain from saying negative things about Tesla publicly to keep that from happening. If and when Tesla decides it is time for you to enter into a validly binding sales contract, it will notify you.
Deferral and non-transferability
If and when the time comes to place an order for a Model 3, and the reservation holder decides not to proceed with signing a sales contract, they will be permitted to defer reservation until a later time. Only one deferral is permitted. Those looking to make a quick profit by selling their early reservation should take note that it is not transferable.
Priority
There has been much discussion in the past few weeks about getting a low reservation number. People are fanatically interested in getting their Model 3 before the federal tax credit for Tesla vehicles begins to expire. Others just want to be the first on their block to own one. Either way, just being first in line at your local Tesla store on March 31 won’t necessarily determine your place in the Model 3 reservation queue. The Reservation Agreement makes that crystal clear.
“We will establish your reservation sequence position in our sole discretion. We may decline reservations to avoid over-subscription or as we deem appropriate in our sole discretion. If your reservation is declined or we decide to cancel your reservation, you will be notified and your Reservation Payment will be refunded.”
Limitation of liability
Tesla anticipates that a few customers may become annoyed with the Model 3 ordering process at some point in the future. There may be delays. Specifications for the car may change. Any number of things could happen that could be contrary to a buyer’s expectations at the time the reservation was made. Can you sue Tesla for disappointing you? No, you cannot. Forget about it.
Acknowledgements when you sign a Reservation Agreement
When you sign your Reservation Agreement and hand it to a Tesla representative or transmit it electronically, Tesla wants you to know a few more things.
“You understand that Tesla may not have completed the development of Model 3 or begun manufacturing Model 3 at the time of your reservation. You also acknowledge that, if you purchase a Model 3, the Model 3 may not be delivered to you until the end of 2017 or later. You also agree that we will not hold your Reservation Payment separately or in an escrow or trust fund or pay any interest on Reservation Payments.”
In other words, when you sign on the dotted line on March 31 or any later date, you should be aware that the Model 3 is still a work in process. What you see at the official reveal may or may not be the car that will be built for you in the future. It could have more or less doors. It could look substantially different. What you see may not be what you get.
Summary
Make no mistake about it, Tesla intends to build the Model 3 and lots of them. It just wants you to understand that by reserving one now, you are only getting the right to purchase something in the future. What that something is remains totally up to Tesla to decide. Since all reservations fees are fully refundable, you have nothing to lose. You are reserving a ride on the road to the future. Enjoy your journey but be prepared for some twists and turns along the way.
More Tesla Model 3 News
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Tesla is launching a crazy new Rental program with cheap daily rates
This week, Tesla launched its in-house Rental program that will give people a vehicle for between three to seven days, with prices varying and starting at just $60 per day.
Tesla is launching a crazy new Rental program with cheap daily rates, giving people the opportunity to borrow a vehicle in the company’s lineup with an outrageous number of perks.
This week, Tesla launched its in-house Rental program that will give people a vehicle for between three to seven days, with prices varying and starting at just $60 per day.
However, there are additional perks that make it a really great deal, including Free Supercharging and Free Full Self-Driving (Supervised) for the duration of the rental.
There are no limits on mileage or charging, although the terms do not allow you to leave the state you are renting.
Tesla wrote in an email advertising the program:
“Rent a Tesla and see how it makes every errand, commute, and road trip more fun. While it’s yours, try Full Self-Driving (Supervised) and control and monitor your vehicle with the Tesla app.
Schedule your rental for three to seven days starting at $60 per day (plus taxes and fees) and charge for free at any Tesla-owned Supercharger.
Order your own Tesla within seven days of your rental to get up to a $250 credit toward your purchase.”
This is a great opportunity that will convince MANY people to make the jump.
All your concerns about switching are answered within two days. It’s easier than owning a gas car ever has been. https://t.co/QayTf6YVbw pic.twitter.com/TCHqfTRpes
— TESLARATI (@Teslarati) November 8, 2025
Tesla has long adopted the mentality that butts in seats will sell cars, and for the most part, it is a great strategy. Driving a Tesla is different from owning and driving a combustion engine vehicle; it truly feels as if you are in a car from the past when you get back in an ICE car.
This strategy could be looked at as more of a way for people to experience Tesla ownership than anything.
Although some might use it as a typical rental program that will see it be a cool way to drive without putting miles on a personal car, most will use it as the 48-hour test drive was designed for, which is a short-term way to experience EV ownership.
Tesla is only offering this program at a handful of locations currently, including San Diego and Costa Mesa, California.
News
Tesla makes online ordering even easier
Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.
Tesla has adjusted its Online Design Studio to make for an easier trade-in process, reflecting the details of the exchange for a more accurate reflection of payment terms.
Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.
Trade-ins are usually given by submitting vehicle details, then Tesla sends an email with an offer. Offers are non-negotiable, but do adjust over time, although the latest offer is valid for 30 days.
I traded my ICE vehicle for a Tesla Model Y: here’s how it went
Knowing your new Tesla’s cash price, leasing or loan details, and monthly payment information used to be done by the car buyer. From personal experience, I simply subtracted my trade-in from the cash price of the Tesla Model Y, and I plugged those numbers into the payment calculator.
Now, Tesla is implementing the trade-in process directly into the Design Studio. It will adjust the price of the car and the different monthly payment methods automatically:
Trade-in estimates available directly on our configurator in few states including CA, will cover all of US and Canada next week.
For loyalty customers, if their trade-in VIN is eligible for any loyalty credit, the same will be applied to the estimate. pic.twitter.com/7097vPleMf
— Raj Jegannathan (@r_jegaa) November 8, 2025
The change is already noticed in a handful of states, including California, but it has not rolled out across the board quite yet. It will be implemented in all of the U.S., as well as Canada, this coming week.
The trade-in process is very simple, and after you accept your offer, you simply drop your vehicle off during the delivery process. Making this simple change will be greatly appreciated by owners.
News
Tesla confirms Robotaxi is heading to five new cities in the U.S.
After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.
Tesla Robotaxi will hit five new cities in the United States in the coming months, the company confirmed.
After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.
The Robotaxi suite is a ride-hailing service Tesla offers, but the details of it change with each jurisdiction, as regulations vary. For example, in Austin, Tesla can operate the Robotaxi suite without anyone in the driver’s seat, as long as the vehicle does not enter a freeway.

Credit: Tesla
In the Bay Area, a Safety Monitor rides in the driver’s seat, essentially acting as the vehicle operator with Full Self-Driving controlling the car.
The local regulations and how Tesla handles them will continue to be a relevant part of the discussion, especially as the company aims to expand the Robotaxi program to different areas. This has been a primary focus of the company for several months, especially within the United States.
CEO Elon Musk said that Tesla was aiming to launch Robotaxi in Nevada, Arizona, and Florida. However, the company detailed five specific cities where it will launch Robotaxi next during the Annual Shareholder Meeting on Thursday.
Tesla will launch Robotaxi in Las Vegas, Phoenix, Dallas, Houston, and Miami next, broadening its Service Area for the suite to more major cities across the U.S.
It has said it plans to offer the service to half of the U.S. population by the end of the year, but it does not seem as if it will expand to more than a handful of cities this year, which is still tremendous progress, all things considered.
As far as autonomy is concerned, Tesla has always had lofty expectations and has made some even loftier statements.
At the Shareholder Meeting, Musk said that the company would likely be able to enable vehicle owners to text while the vehicle drives, alleviating them from potentially having some of the responsibility they have behind the wheel.
Tesla says texting and driving capability is coming ‘in a month or two’
It is not confirmed that Tesla will roll this out in the next few months, but Musk said there is a possibility.
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