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The Era of Model 3 Flipping

The Era of Model 3 Flipping

I think these sales we are seeing pop up here and there lately are going to become rampant, and continue for some time. It's pretty clear there's some some serious "fast cash" potential in taking delivery from an early reservation, while Tesla is still struggling to catch up and accommodate this insane demand, and selling it almost immediately for beaucoup bucks. I can see some pros and cons--on the one hand you stand to make $50-100k really quick, depending on how much people are willing to pay to jump the line instead of waiting for their reservation to be available for delivery; on the other hand, you're essentially deciding you're fine with not getting your own M3 (which, presumably, you want fairly badly since you reserved it so many months ago) until some time in 2019 or later.

Or maybe a lot of people snapped up an early reservation knowing this would be a possibility once deliveries started rolling out?

Tesla fan boys and girls need not troll--I'm not considering doing this with my reservation; I can't wait to get in the driver seat of my own M3--but it certainly is an intriguing business decision and it will be interesting to see if we are now entering the era of folks flipping model 3s with regularity.

KP in NPT | 13 ottobre 2017

I'm not surprised there will be people trying to flip their cars - but I am surprised that the ones that have shown up so far are employee/insider cars - since Tesla supposedly had "rules" about trying to sell for more than original price. Makes me wonder if these people are employees, or are former employees, or fall into the "insider" category.

maintreqd | 13 ottobre 2017

I was thinking on that as well. I wonder if there are some folks who were/are waiting to leave their posts at Tesla and see the ~$100k payday as a good way to breach the gap (i.e. take delivery, quit, sell for big money).

Then again, I'd imagine someone at Tesla was wise enough to build a clause into employee delivery that binds them legally to some agreement of not selling for more money for a defined period of time, etc.

Shock | 13 ottobre 2017

"on the one hand you stand to make $50-100k really quick"

Nobody is paying $140k for a model 3.

KP in NPT | 13 ottobre 2017

"Nobody is paying $140k for a model 3."

And even if they did - with salaries in the area, it's hardly worth it unless you were considering leaving the company anyway. (assuming these are employees selling.)

jordanrichard | 13 ottobre 2017

The biggest fool will be the one who pays that much for a 3. Unless Elon and crew signed a part of the car, there is no future collectability for the Model 3. This is not like a Shelby Cobra with Carroll's signature on it.

Sure you get bragging rights, but that means nothing to anyone outside of the Tesla bubble. Even within the Tesla bubble the car looks like any other 3.

PhillyGal | 13 ottobre 2017

The laws of supply and demand are what they are. While I place scalpers of all kinds at the bottom of the chain of the human species, it's going to continue until you can order the Model 3 and get it a few weeks later. Me? I'll be enjoying my car, laughing as I pass by gas stations. Priceless.

chrisfish | 13 ottobre 2017

Think of the Model 3 like the first Iphone. People wanted it bad enough that the price increased 3-4 fold.

PaceyWhitter | 13 ottobre 2017

I agree that model 3 supply is low, but Tesla supply in general is not. I cannot fathom why someone would buy a flipped 3 over a new loaded S.

gar1116 | 13 ottobre 2017

Hey, people bought Pet Rocks.

Frank99 | 13 ottobre 2017

There's a very small market for marked-up used Model 3's. There may be one or two people with more money than sense who'll pay a 5-figure premium to get one before anyone else, and there may be some interest for a dozen or so from other manufacturers to get one they can tear down as soon as possible, damn the cost. But that's all I can imagine.
There might be more of a market at a $7500-$10000 premium - imagine you haven't reserved one, so you know that by the time you could get one from Tesla, it wouldn't be eligible for the $7500 tax credit. Thus, buying one now, used, for list price (letting the original owner take the tax credit), means you get the car 1.5 years early, for the same price you'd pay in the future.

wsuschmitt | 13 ottobre 2017

I'd say a corporate engineer for one of the competitors would be willing to pay that, so they can take a look at the goods quicker than their competitors. Kind of a grey-area corporate espionage.

AKML | 13 ottobre 2017

I find paying over $75k for a low VIN # Model 3 very strange. Why not just buy a Model S?
Collectability, maybe, but that is quite a risk with a long time for return.
The better, more collectible, Model 3 will probably come a year from now with 2 motors, Ludicrous, and other goodies.

carlk | 13 ottobre 2017

If this car is sold through dealers no one would be able to buy the car at the list price for at least 6 months if not more.

@Mikolevine There are people who just want to buy a "new" car. It's no longer a new car when your neighbor or coworker has one.

maintreqd | 13 ottobre 2017

Right. I think people underestimate the frivolity of people who just have way more dispensable income than most of us can dream of having. And you see a lot of those people regularly shopping on eBay for what usually amounts to bragging rights, and the ability to have something before others can or do, etc.

Garyeop | 13 ottobre 2017

@gar1116
+1 "Hey, people bought Pet Rocks."

I want my Model 3, but I am cheep enough to sell mine for a $50k profit. My best guess is that if there is that much demand every car maker is or will make a good electric and fulfill demand. I like iphones but i am writting this on my Samsung S7 edge because i feel it gives more for the money. I doubt many can be flipped before Tesla and others spew out enough EVs. But again isn't that also the master plan? I would suggest getting your 2nd Reservation but more importantly begin looking at solar panels.

Wouldn't the success of EVs cause an increase in electricity prices and then a rush to get solar panels?

On that note, why doest Tesla make a "Total package"? 2 Tesla cars, solar panels, and power wall all with one monthly payment. All for about $2k per month for 10 years. Hell, 2 car payments and all utility bills and all you would spend on gas and belts...not a bad deal.

Xerogas | 13 ottobre 2017

I've seen no evidence of actual sales. People *trying* to sell, but the listings go down pretty quickly. Not sure a true sale has been completed, nor what the price was.

topher | 13 ottobre 2017

"Wouldn't the success of EVs cause an increase in electricity prices and then a rush to get solar panels?"

It's complicated. But first, EV will be charging on off-peak, low cost electricity (actually lowering prices). With greater adoption, EV will start making an impact on total consumption (slightly offset by reduction in gasoline production), but it will be a while before that exceeds the *current* rush for solar panels (some rise in price here). Eventually, EVs will be integrated into the grid, providing storage and stability, and lowering prices once again. At least that is how we *hope* it will happen. Plenty of opportunities for people to screw that up, by say, subsidizing coal, or adding a tariff to solar panels.

Thank you kindly.

PBEndo | 13 ottobre 2017

As I understand it, if an employee tries to sell an early M≡ thereby violating the purchase agreement, Tesla may be able to fire the employee but they can't take the car back.

Could Tesla withold software updates, warranty repairs or even data access/slacker/tunein? If so, buying a flipped M≡ would be risky.

topher | 13 ottobre 2017

"Could Tesla withold software updates, warranty repairs or even data access/slacker/tunein?"

No, they can't.

Thank you kindly

Haggy | 13 ottobre 2017

It makes little sense to overpay for a Model 3, and lose all tax benefits, when you could buy a CPO Model S.

However, there will be a handful of people who could easily get $150,000 for the car. It won't be from a collector though. Quite the opposite. It will be for reverse engineering. I'm sure that GM is already actively looking, if they haven't bought one already.

Employees can't sell them for a profit, but they can sell them to a relative who can sell it for a profit. That can't be done intentionally by the employee, especially if the employee gets a share of the profits. But if you are an employee, you sell your car to your brother in law, and he goes behind your back and sells it to GM, there wouldn't be anything you could do about it.

Tesla2018 | 13 ottobre 2017

I waited about 2 years and was 7th in line at the local dealership to get a Lotus Elise. When I got my car there was a waiting list of over a year. A person I know was at a traffic light in Miami and someone oferred him about 20K more than he paid for it. He took the money and went and ordered another one. They only were making 3000 cars so the demand exceded supply. In another year there will be half a million model 3s on the road. A bunch will be for sale since people might not like them or run out of juice once and get annoyed or sell for other reasons. I dont see these csrs appreciating after they catch up with demand. You dont want to be like people that paid 40K for a Mazda Miata or PT Cruiser

ReD eXiLe ms us | 13 ottobre 2017

People bought Sea Monkeys, and the Plymouth Prowler too.

Coastal Cruiser. | 14 ottobre 2017

If there is going to be any flipping of a Model 3 then it should be a Pawn Stars episode.

You know what the first question will be....

slasher0016 | 14 ottobre 2017

I think the only reason there are some on the market is because Tesla just fired a bunch of people. Some of those had Model 3s and they are pissed off so they're going to take the money and run.

ram1901 | 14 ottobre 2017

I thing slasher0016 is on to something.

sosmerc | 14 ottobre 2017

I thought about that too. Do you think NDA's apply to fired employees? (they probably still do, but the only winners will be the lawers). Going to be interesting to watch TSLA price action on Monday.

sosmerc | 14 ottobre 2017

(I think lawers are similar to lawyers) Sorry about that.

noleaf4me | 15 ottobre 2017

I created a thread many months ago asking people how much they would need to be offered (above the $7500 rebate as many would lose that) and numerous people would take $10-20k over their final all in price. With that said - you will see many Model 3's changing hands....

Rutrow | 15 ottobre 2017

Maybe the ones for sale are cheap Chinese knockoffs?!? Better check the length of the upholstery stitches.

SamO | 15 ottobre 2017

Easy easy easy way to avoid any agreement. Simply sell car for original sale price to a friend, who then can resell with higher prices.

tes-s | 15 ottobre 2017

Has anyone seen actual sale prices? I can't see anyone paying more than perhaps $10k for it.

I can see a lot of value in early reservation owners selling if they don't qualify for the full $7500 tax rebate.

At $10k, the seller gets $10k and it costs the buyer $2500 and the government pays $7500.

Wildcardtaylortesla | 15 ottobre 2017

I doubt if a company that fires someone can also get away with forcing them not to sell assets to survive.

bogunsjohn2000 | 15 ottobre 2017

You are very naive if you believe people will be paying $-50K in a $35K car. Advertising it is one thing. Totally different olosing that sale. That said, I will be probsbly one of the first to get Model 3 since I was at a night camp out in the West Coast. I will sould sell it for $75K.

stevenli9999 | 15 ottobre 2017

I would believe that there are plenty of folk simply letting there reservations go as the wait extends now into 20months from reveal.

If one had the opportunity to flip the reservation for a quick $2-3k? People would do that. Those getting in line now have NO chance of the $7500 fed rebate. So buying at actual cost + mild 'front of line' pass is worthy --- people buy these line cutting passes all the time at Disney and the like---very American :)

georgehawley.fl.us | 16 ottobre 2017

I'm with @Frank99. The car is intended for my bride but she might not like it. In that event it is nice to know that we can get our money back with maybe some of the tax credit.

2015P90DI | 16 ottobre 2017

I doubt anyone will pay $150,000 for a Model 3, but there are certainly companies out there that want to get their hands on a Model 3 to start developing products for it. It would have value to those types of people to be first to market and thus would pay a hefty premium. Don't think that premium would be $100,000, but maybe $20,000 or $25,000.

RedPillSucks | 16 ottobre 2017

Am I alone in thinking the guy really didn't want to sell his car, which is why the price was so high?

*Let me put this ham sandwich on Ebay for $2000. Oh s**t!!! people are bidding, what do I do now?*