Elon Musk says Tesla wants to eliminate contracts for customers

Tesla CEO Elon Musk said the company wants to simplify its sales process.Rich Pedroncelli / Associated Press

• Tesla CEO Elon Musk said on Monday that the company is attempting to eliminate contracts for its customers and simplify the return process.
• “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,” Musk said on Twitter.
• Tesla did not immediately respond to a request for comment on its timeline for eliminating customer contracts.

Tesla CEO Elon Musk said on Monday that the company is attempting to eliminate contracts for its customers and simplify the return process.

Musk was replying to a Twitter user who said his sister-in-law had experienced a delay with the contract for her Model X SUV.

“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,” Musk said.

Tesla did not immediately respond to a request for comment on its timeline for eliminating customer contracts.

Unlike other auto companies, Tesla does not sell its vehicles through licensed dealerships, choosing instead to sell them through its website and company-owned stores. Avoiding the dealership model gives Tesla more control over the sales process, but the company has run into opposition from state governments, some of which have laws that prohibit automakers from selling vehicles directly to their customers. In some cases, Tesla operates showrooms where customers can see and learn about its vehicles, but cannot place orders.

On Monday, Tesla confirmed that one of its top sales executives, Ganesh Srivats, had resigned. 

“We’d like to thank Ganesh for his hard work and wish him all the best in the future,” a Tesla representative said.

Srivats will become the CEO of the online clothing and accessory retailer Moda Operandi on August 1, the company said in a press release.

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