[nightski]

I don't see how this is "without the downside". A refund could end up being more expensive to Tesla in the long run (in terms of # of BTC). If BTC has a temporary dip they have to give you more BTC to equal the $ amount. BTC has demonstrated, while volatile, to be quite likely to keep nudging upward.

In addition, just because it is priced relative to USD doesn't mean it is accurate to say the transaction takes place in dollars. That is absolutely not true.

Lastly, as someone who has only bought 2 cars in my lifetime - who refunds cars? Is that common? I've never heard of such a thing. What is the return rate on Teslas?

[brudgers]

In the case of a safety recall in the US, the manufacturer gets to choose from three options to address it.

1. Fix it for free.

2. Replace the vehicle with a new vehicle.

3. Purchase the vehicle back.

Bitcoin potentially provides arbitrage with the third option. Safety recalls are not uncommon. Suppose Tesla ships an over-the-air software change and then recalls the vehicles.

State by state Lemon-laws also might come into play.

At a minimum there is nothing buyer friendly in the clause.

[tptacek]

Since they can choose how to refund, they can refund in USD as long as BTC is appreciating, and refund in BTC if BTC depreciates below the spot price at the time of purchase. On the backend, they can just convert BTC to cash if they're worried about currency risk.

[nightski]

Fair enough but the consumer can also play the same game at time of purchase. BTC up today? Buy a car. BTC down today? Do not.

Either way you get the USD equivalent back. I can't imagine someone actually caring about this. If you think it's likely that you will return a car, maybe think about such a large purchase a little more?

[dyslexit]

You don't get your USD equivalent back if they pay you back in depreciated BTC.

[nightski]

Sure, but from how I interpret the clause it would be the exact same amount of BTC as you put in to purchase it. So it doesn't really matter if it's value relative to USD is less? You are in the same position as if you had not bought the car.

"If you are entitled to a refund of your payment or to a buyback, we reserve the right to refund you either the exact Bitcoin Price that you provided to us at the time of purchase"

Either way you are getting either 1. the exact amount of BTC you put in or 2. the USD value of the car.

[tptacek]

If you buy a car in BTC worth $50k USD at the time of purchase, and, at the time of the refund, the same BTC is worth $75k, they will refund you $50k USD.

If you buy the same car and refund when BTC is worth $25k, they will refund you $25K worth of BTC.

Heads they win, tails you lose.

[nightski]

That's not what the clause says - or at least point to specific phrase. It says if you buy it for 2 BTC they will refund you 2 BTC (assuming they refund BTC).

[shahan312]

Tesla's policy I believe is 7 days.

I think California allows returning a used car within 2 business days and under 250 miles.

[akmarinov]

They quietly got rid of the 7 days policy - https://www.theverge.com/2020/10/16/21520086/tesla-full-refu...