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Tesla is looking to eliminate contracts for faster vehicle delivery process
In what appears to be yet another initiative to deliver as many of its electric cars as possible to customers, Elon Musk has announced that Tesla is trying to get rid of paper contracts completely. According to Musk, Tesla’s delivery process should be as simple as a tap on a screen. Under the system, returns for Tesla’s vehicles should be a lot simpler as well.
Musk’s Twitter update came as a response to Tesla enthusiast JD Mankovsky, who noted that his sister-in-law has been in a delivery center for hours waiting for her all-electric SUV’s contracts to be finished. Mankovsky stated that there was a backlog in the delivery center’s contract/legal approval level, causing handovers to be delayed. In classic fashion, Musk promptly responded with an idea in tow.
We’re trying to get rid of contracts completely. Should just be “tap here & you get your car”. Then, if you don’t like it for any reason, just return it like any other product.
— Elon Musk (@elonmusk) July 23, 2018
If Tesla does employ what could pretty much be described as a tap and drive system, it would be yet another way for the company to separate itself from the conventions of the traditional auto industry. Issuing and signing contracts, after all, are a well-known, time-consuming aspect of the vehicle delivery process, and it is one practice that Tesla still engages in today. By getting rid of paper contracts, Tesla will separate itself even more from traditional auto sales practices. Such a practice will also make the buying experience of Tesla’s vehicles more similar to consumer tech products than conventional cars.
In a way, using a digital signing system for its vehicles is a strategic move for Tesla. The use of digital contracts, after all, has only been growing over the years. In the United States alone, digital signatures are an option for filing tax returns over the internet, and that is valid in every state today. Tesla would likely need to adapt to additional regulations if or when it starts using digital contracts, but the transition could be done.
Elon Musk’s statement about returning vehicles if customers are not satisfied further emphasizes the idea that Tesla’s vehicles are more like computers on wheels than regular vehicles. Elon Musk has, over the years, underscored the idea that Tesla is a different breed of carmaker, not only in terms of its products but also in terms of its business practices. Returning cars to the company in a manner similar to returning an iPhone to Apple definitely falls under that category. Returned vehicles could even give the company a considerable revenue. Apple, for one, usually uses returned units to be sold later on as refurbished devices. Tesla could employ a similar strategy, opening a lineup between its brand new and CPO offerings.
Looking at Elon Musk’s tweet in the short-term, the removal of traditional paper contracts seems to be yet another way for Tesla to increase its delivery figures. The company, after all, is currently pushing for profitability this third quarter. For Tesla to do this, it would have to deliver as many cars as it can to customers, particularly higher-margin vehicles like the Model 3 Performance, the Model S P100D, and the Model S P100D. Such a system ties in perfectly with the company’s new 5-Minute Sign & Drive system for Model 3 deliveries as well.
In a way, Tesla’s efforts to expedite the deliveries of its vehicles are in the best interests of the company’s customers. Earlier this month, Tesla announced that it had sold its 200,000th electric car in the United States, triggering the phase-out period for the $7,500 tax credit granted to its customers. The tax credit is set to decrease over the next quarters and fully expire by December 2019. Thus, from this point until the end of next year, it would be up to Tesla to deliver as many vehicles as possible to ensure that its customers qualify for a federal tax credit.
Tesla made a change to the Cybertruck, and nobody noticed. But to be fair, nobody could have, but it was revealed by the program’s lead engineer that it was aimed toward simplifying manufacturing through a minor change in casting.
After the Cybertruck was given a Top Safety Pick+ award by the Insurance Institute for Highway Safety (IIHS), for its reputation as the safest pickup on the market, some wondered what had changed about the vehicle.
Tesla makes changes to its vehicles routinely through Over-the-Air software updates, but aesthetic changes are relatively rare. Vehicles go through refreshes every few years, as the Model 3 and Model Y did earlier this year. However, the Cybertruck is one of the vehicles that has not changed much since its launch in late 2023, but it has gone through some minor changes.
Most recently, Wes Morrill, the Cybertruck program’s Lead Engineer, stated that the company had made a minor change to the casting of the all-electric pickup for manufacturing purposes. This change took place in April:
We made a minor change on the casting for manufacturability in April. Our Internal testing shows no difference in crash result but IIHS only officially tested the latest version
— Wes (@wmorrill3) December 17, 2025
The change is among the most subtle that can be made, but it makes a massive difference in manufacturing efficiency, build quality, and scalability.
Morrill revealed Tesla’s internal testing showed no difference in crash testing results performed by the IIHS.
The 2025 Cybertruck received stellar ratings in each of the required testing scenarios and categories. The Top Safety Pick+ award is only given if it excels in rigorous crash tests. This requires ‘Good’ ratings in updated small and moderate overlap front, side, roof, and head restraints.
Additionally, it must have advanced front crash prevention in both day and night. Most importantly, the vehicle must have a ‘Good’ or ‘Acceptable’ headlights standard on all trims, with the “+ ” specifically demanding the toughest new updated moderate overlap test that checks rear-seat passenger protection alongside driver safety.
Tesla has entered an interesting situation with its Full Self-Driving suite in California, as the State’s Department of Motor Vehicles had adopted an order for a suspension of the company’s sales license, but it immediately put it on hold.
The company has been granted a reprieve as the DMV is giving Tesla an opportunity to “remedy the situation.” After the suspension was recommended for 30 days as a penalty, the DMV said it would give Tesla 90 days to allow the company to come into compliance.
The DMV is accusing Tesla of misleading consumers by using words like Autopilot and Full Self-Driving on its advanced driver assistance (ADAS) features.
The State’s DMV Director, Steve Gordon, said that he hoped “Tesla will find a way to get these misleading statements corrected.” However, Tesla responded to the story on Tuesday, stating that this was a “consumer protection” order for the company using the term Autopilot.
It said “not one single customer came forward to say there’s a problem.” It added that “sales in California will continue uninterrupted.”
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
Tesla has used the terms Autopilot and Full Self-Driving for years, but has added the term “(Supervised)” to the end of the FSD suite, hoping to remedy some of the potential issues that regulators in various areas might have with the labeling of the program.
It might not be too long before Tesla stops catching flak for using the Full Self-Driving name to describe its platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
The Robotaxi suite has continued to improve, and this week, vehicles were spotted in Austin without any occupants. CEO Elon Musk would later confirm that Tesla had started testing driverless rides in Austin, hoping to launch rides without any supervision by the end of the year.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Tesla made a change to the Cybertruck and nobody noticed
Tesla enters interesting situation with Full Self-Driving in California
