Tesla Doubled Its Non-Refundable Order Fee

Find out if you're getting ripped off on your car insurance in less than two minutes.
Find insurance savings (100% Free)
No long forms · No spam · No fees
Serena Aburahma
Updated on Jun 27, 2022 · 3 min read
is undoubtedly the pioneer when it comes to electric vehicles. Many are surprised to learn that they also make
the best vehicles for the U.S. economy
The innovation doesn't end there, as the Palo Alto carmaker implemented superior customer service. One noteworthy example was its "no questions asked" return policy, presuming customers only had the new car for a week and kept miles under 1,000.
Nothing lasts forever, unfortunately. This includes some of Tesla's most celebrated customer service practices. Tesla quietly made changes to a few policies recently, and these changes weren't necessarily in the customer's favor.
Tesla has made some major changes to their policies like many other auto manufacturers have had to do during the Coronavirus pandemic.

The Tesla order fee

Previously, Tesla had a $100 non-refundable order fee, as reported by
. This was in part to cover costs associated with returns.
Sure, a customer could return a vehicle, but the $100 order fee would not be refunded. In a way, this makes sense to offset the costs associated with returns.
The return policy makes sense, as the transition from gas to electric can raise unforeseen challenges. Customers could buy a Tesla with confidence, knowing that if their local EV infrastructure isn't up to snuff, an exchange could be made with ease.
In the past week, this non-refundable order fee was more than doubled to $250 with no explanation provided.

Why isn’t the company accepting returns anymore?

The increase in the non-refundable fee could be assumed to cover the rising cost of returns. But Tesla recently canceled its beloved return policy.
The refund policy was killed in silence, leaving many scratching their heads in confusion. No press release or official statement has been made explaining the change.

Possible explanations for Tesla’s policy changes

Without an official explanation, we are left to ponder why Tesla gave this popular return policy the axe. Electrek.co speculates that it was related to the international microchip shortage, which is forcing
all automakers to make dramatic changes
To oversimplify, the great microchip shortage was a result of the pandemic. When many people were in quarantine and staying at home, they decided to upgrade many of their electronics and appliances. At the same time, many microchip producers were suspending production for employee safety.
As a result, we are now in a microchip shortage. Many people expect the shortage to end by the end of the year since chip production has mostly resumed.
The chip shortage affected all carmakers, including Tesla. Electrek.co found that Tesla orders are taking much longer to fulfill than in normal times.
While not confirmed, it is reasonable to attribute the longer fulfillment times to the chip shortage. The chip shortage may also be the blame for Tesla ending their return policy.
As microchips are more precious now than at any other point in Tesla's history, they need to be guarded as such. The company may no longer be able to afford a chip going unused due to a return. This gives hope that the return policy may come back when the shortage is over, but that’s just a hope.
Whether you're thinking of getting a new Tesla or keeping your current vehicle,
can save you money on car insurance. An intelligent AI-based tool like Jerry is the easiest and most effective way to find a car insurance policy that is customized for you.
After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don't have to. So why do all that extra work when Jerry can do it better?

Compare Car Insurance for Your Car

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free