Arbitration clause: who is opting out?

[cvalue13]

OK, that was a pleasantly definitive response, thanks.

well, better understanding your exact conundrum (will Tesla respond somehow to opting out), I’ll just alter my response above to include: “all else equal”

that said, they’re legally required to offer this opt out, and I’d think (but don’t know) that if they began giving dissimilar treatment to people who opt out it would create risk for Tesla. (Whether Tesla cares about risk, unsure.)

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[CyberGus]

Search for "arbitration" over on TMC and you'll see tons of sad stories about it... from those that failed to do so. The consensus there is you should always, always opt-out. No one has reported getting bad treatment from Tesla after doing so AFAIK.

Note that you have 30 days after the purchase of the vehicle. The clock starts when you sign the purchase agreement, which means the vehicle is in your possession.

"You may opt out of arbitration within 30 days after signing this Agreement by sending a letter to: Tesla, Inc.; P.O. Box 15430; Fremont, CA 94539-7970, stating your name, Vehicle Identification Number, and intent to opt out of the arbitration provision. If you do not opt out, this agreement to arbitrate overrides any different arbitration agreement between us, including any arbitration agreement in a lease or finance contract."

https://teslamotorsclub.com/tmc/thr...opt-out-of-arbitration-within-30-days.312927/

 

[sylvius]

My order document for foundation series clearly says 30 days to opt out from date of order agreement, not from date of delivery. IHence my conundrum. At any rate, the opt out letter was sent to them today. Hoping I never need it because the truck works great, not because I never get the truck

It is possible that the final documents to sign at taking possession will have a new binding arbitration provision with its own 30 day opt out window.

 

[CapheDa]

I have opted out of arbitration by sending in the letter. I do this routinely whenever I see the option in terms and conditions. I don't anticipate any legal problems, but everyone must know by now that arbitration (voluntary or mandatory) protects the company that wrote the contract requiring arbitration. It's one-sided and not fair to both sides. It's mainly to prevent class action lawsuits but it is also used to dissuade real lawsuits from happening too.

The steps to opt out are not easy. They have to give you a way to opt out otherwise it is not "voluntary" but "mandatory". Usually, you have to send snail mail even though they could easily pop up a website to opt-out. Some people don't have printers anymore let alone envelopes and stamps. I have developed 80% of a service that will mail your opt-out for you. We just haven't turned it on yet. We are struggling with pricing. It costs less than a dollar, including postage, to mail the opt-out in for you and send you a copy or a link to a copy (thus proving it was mailed).

If we target our price to be $2, would people pay that much to send in their arbitration opt-out notice? If the business case is there, I would do the remaining 20% to get it up and running.

 

[yishen]

The order document includes a clause agreeing to arbitration for any disputes. My brother-in-law, who is an attorney, recommends I opt out. What are people's thoughts? Anyone opt out? Is there any chance that opting out would slow my delivery (would they prioritize orders that didn't opt out)?

There is a 30 day window from order date to decide so I have just over a week left to decide whether to mail them a letter opting out.

Old thread, I know, but I found it now and maybe it will help someone else if I leave a comment too. I wouldn’t stress about them slowing your order, companies usually separate legal stuff from fulfillment. The clause is more about future disputes, not day to day ops.

Mine had something similar and I ignored it at first, then later had a billing issue and yeah… not fun navigating that. That’s when I looked deeper and ran into ICC arbitration, helped me understand what happens if things escalate and why companies prefer it.

If you’re unsure, opting out just keeps more doors open. That’s kinda how I see it now.

 

[SabrToothSqrl]

I opted out on my 2023X, after issues with my 2019 X.
Even if you do not opt-out, you can still use small claims court to resolve 'smaller' issues. At least as of the last contract I read in 2023 for my Model X.

Ordered a CT Premium AWD 3/23/26.

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