This I truly don't understand how it became a thing - seriously wow
People are selling their Tesla Model 3 reservations for a 300% profit
Oct 12, 2017
By Claudia Assis
A chance to leapfrog the Model 3 line for the well-heeled
Those who are desperate to own a Tesla Inc. Model 3 and have the deep pockets to match may look no further than Craigslist for a chance, albeit a risky one, to leapfrog the line for the Silicon Valley car maker’s newest and most affordable sedan.
Several Craigslist ads have surfaced offering to sell the $1,000 reservation, the virtual spot in line that future Model 3 owners are required to place months before getting their car.
Nearly all ads carried markups, and the highest asking price this week was $4,000 found on a Craigslist ad in San Francisco Bay Area:
A Tesla (TSLA) spokesperson declined to comment on the practice and whether Tesla would honor any transfers from original reservation holder to random buyer. The fine print for Model 3 reservations includes language saying that any transfer is subject to Tesla’s approval.
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It is not clear which transfers Tesla would authorize, such as between close family members, or who would keep the reservation if a holder is deceased. The reservation is refundable.
Potential Model 3 buyers placing the $1,000 pre-order today would wait up to 18 months to get their cars, according to the Tesla website.
Earlier this week, a Tesla Model 3 appeared in a Craigslist ad from Monterey, Calif. The post, with an asking price of $150,000, has since been deleted.
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A Model 3 starts around $35,000, but the first handful of Model 3 sedans that Tesla has delivered were high-trim versions, with longer battery life, and were reportedly sent to Tesla employees.
Earlier this month, Tesla disclosed disappointing delivery numbers for the Model 3, pinning its slower-than-expected production ramp on “production bottlenecks.” It delivered 220 Model 3 sedans in the third quarter, a fraction of what Chief Executive Elon Musk had projected.
Musk had said he expected to see a production increase to 1,500 Model 3s by September, with plans to reach 5,000 by the end of the year and 10,000 a week by the end of 2018.
The Wall Street Journal reported last week that Tesla was building some of the Model 3 parts by hand.
Musk last week said on Twitter the unveiling of the Tesla electric semi truck would be postponed from Oct. 26 to Nov. 16 as the company focuses on Model 3 production and a potential project to increase battery production to Puerto Rico and other areas affected by the season’s deadly hurricanes.
Tesla unveiled the Model 3 in July, and the car is the linchpin of the company’s expansion plans, which include adding new passenger and commercial vehicles to Tesla’s lineup, selling solar roofs, and the ability to produce vehicles at an annual rate of 500,000 by the end of next year.
Tesla shares have gained 68% so far this year, compared with gains of 14% for the S&P 500. (SPX) The outperformance holds in recent months; the stock is up 9% in the past three months, while the benchmark has gained 4.5%.