People are selling their Tesla Model 3 reservations for a 300% profit

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, +0.85%  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.

See more: Tesla stock rallies after bullish Wall Street view

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.

Related: Tesla car population will explode within a few years, Morgan Stanley says

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, -0.04%  The outperformance holds in recent months; the stock is up 9% in the past three months, while the benchmark has gained 4.5%.

Filed in: Top News Tags: 

You might like:

The scary thing Hollywood does when it runs out of reboots The scary thing Hollywood does when it runs out of reboots
How online dating affects divorce rates How online dating affects divorce rates
The New York Post: Wilbur Ross shifted $2 billion to family trusts before his confirmation The New York Post: Wilbur Ross shifted $2 billion to family trusts before his confirmation
The Wall Street Journal: Terrorist leader, one of America’s most wanted, killed in Philippines The Wall Street Journal: Terrorist leader, one of America’s most wanted, killed in Philippines
Asia Markets: Asian market rally shows signs of slowing Asia Markets: Asian market rally shows signs of slowing
Key Words: John McCain warns against rise of ‘spurious nationalism’ in U.S. Key Words: John McCain warns against rise of ‘spurious nationalism’ in U.S.
MarketWatch First Take: Netflix plans huge movie push as it faces post-Disney reality MarketWatch First Take: Netflix plans huge movie push as it faces post-Disney reality
How Netflix reveals the billions it spends on content How Netflix reveals the billions it spends on content

Leave a Reply

Submit Comment
© 2017 Stock Investors News. All rights reserved. XHTML / CSS Valid.