Scalpers resell Tesla Model 3 reservations and earn 300% profit

According to a report by the financial website MarketWatch on October 14, Beijing time, the Model 3, an economical car launched by Tesla, has a starting price of only $35,000, which is much cheaper than the previous Model S and Model X, and is therefore popular among the public. However, due to the low production capacity of the Model 3, it has become difficult to get a car. For this reason, some "scalpers" have begun to plan for Model 3 reservations.

According to reports, some advertisements for reselling Model 3 reservations have appeared on Craigslist, a large free classified advertising website in the United States. In these advertisements, almost all the prices are higher than the official Model 3 deposit of $1,000, and one scalper even marked a price of $4,000. This means that if the resale is successful, the scalper will be able to earn a difference of $3,000, making a huge profit of 300%.

A Tesla spokesperson declined to comment and did not clarify whether Tesla would support such transfers from the original reservation holder to a random buyer, though Tesla's obscure Model 3 reservation terms include language that any reservation transfers require Tesla's approval.

It is not clear what kinds of reservation transfers Tesla will authorize, such as transfers between family members, or who will inherit the reservation if the original reservation holder dies. Model 3 deposits are refundable, however.

Production bottleneck

According to data provided by Tesla's official website, potential users who intend to purchase Model 3 need to pay a deposit of US$1,000 and are expected to wait up to 18 months before picking up the car.

Earlier this week, a Tesla Model 3 appeared in a Craigslist ad in Monterey, California, with a price tag of $150,000. However, the ad has now been deleted.

The starting price of Model 3 is $35,000, but Tesla's first batch of Model 3s are high-end Model 3 sedans with longer battery life. It is said that these Model 3s are delivered to Tesla's own employees.

Earlier this month, Tesla disclosed disappointing Model 3 delivery data, saying that the Model 3 encountered "production bottlenecks" that caused its production capacity to fall below expectations. Tesla said that the company delivered only 220 Model 3 sedans in the third quarter, which was only a fraction of the forecast of the company's CEO Elon Musk.

A report in the Wall Street Journal last week said that Tesla's Model 3 production was lower than expected, mainly because the early automated production line was not ready and some Model 3 parts needed to be assembled manually by workers.

Increased production capacity

Musk has said he expects to produce 1,500 Model 3s per week by September, with plans to reach 5,000 per week by the end of this year and 10,000 per week by the end of 2018.

Musk said last week that Tesla has postponed the release date of its electric truck from October 26 to November 16, and Tesla will shift its main focus to mass production of Model 3 and increasing battery production and supply in regions such as Puerto Rico.

Tesla released the Model 3 in July and the car is a key part of the company's expansion plan, which also includes adding new passenger and commercial vehicles to Tesla's product line, selling solar roofs and increasing the company's car production capacity to 500,000 vehicles per year by the end of next year.

Tesla shares have risen 68% so far this year, compared with a 14% gain for the S&P 500. Tesla's stock has outperformed the broader stock market in recent months: Over the past three months, Tesla's stock has risen 9%, while the S&P 500 has risen 4.5%.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.