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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.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
