I have a ton of early Cybertruck reservations and want to partner up for a business

[GlockandRoll]

The line is the line, businesses are going to buy these and if you were late to the reservation party then you're just going to have to wait. It's not their fault, you don't get to cut just because you don't like who reserved faster than you.

Who, pump the hate brakes dude.

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[earthman]

There's literal laws against gouging people however, that isn't entrepreneurism. I own several business', I couldn't imagine being caught dead gouging people with vehicles I can't actually allocate funding to cover.

Thats dumb.

Yeah, basically reselling them for fair market price is tricky in a couple of ways. Timelines, funding, risks, and even contractual and legal risks. So yeah, I see myself purchasing one for myself and probably that’s it. Ha ha. Maybe flip that one, and then purchase a second one for myself. I don’t think I get to round three doing that. Other scenario is that someone else funds it and runs the whole business I just provide the reservations.

 

[earthman]

Not the OP here, but just guessing that he’s looking for investors. Buying 5-10 new trucks is going to require a bunch of cash. Interest rates are rising fast and getting a small business loan when you need $600,000+ in capital for inventory is going to be a big ask. Plus space to park and charge them, etc.

Yeah exactly thanks for chiming in. You’ll see my comment just above says exactly this.

 

[earthman]

Sure, fair point. Still might wanna have square one(capital allocation) before you get all trigger happy as a flipper lol

Yeah, definitely don’t wanna get caught holding the different types of bags that would sink this strategy. Gotta be a little smart, at least ha ha. But having the reservations is everything. I’m hoping people come to me. That’s a potential scenario.

 

[earthman]

He did say explicitly that he no longer plans to resell the vehicles... He did not say that he wants funding. Yes potentially that is what he wants but until he says that maybe we could just dial back our assumptions. Respectfully... I'm not sure it's fair to judge him based on our assumptions rather than his actual statements.

It’s looking like reselling is not practical basically. So standing up a business is more realistic. That includes the obvious funding and management, etc. I’m not a businessman, I just have the reservations as I’ve said above. It’s valuable to have those reservations, but if you want to capitalize on them, there’s a certain amount of smarts that you’ll have to apply to make sure it’s done correctly. Even that I’m not very good at ha ha. Oh well I’ll be fine Either way this rolls out.

 

[earthman]

The line is the line, businesses are going to buy these and if you were late to the reservation party then you're just going to have to wait. It's not their fault, you don't get to cut just because you don't like who reserved faster than you.

Yeah exactly, reservations were everything back then. I picked up three in 2019 and the other 25 in like 2020 or so or maybe 21 I can’t remember. Either way, that spacing provides the opportunity to continue to revisit what the opportunities are. FSD maybe 25 or $35,000 by the time those other 25 reservations are made available for myself to purchase. That would be a huge amount of equity right out the gate.

 

[Ogre]

Yeah exactly, reservations were everything back then. I picked up three in 2019 and the other 25 in like 2020 or so or maybe 21 I can’t remember. Either way, that spacing provides the opportunity to continue to revisit what the opportunities are. FSD maybe 25 or $35,000 by the time those other 25 reservations are made available for myself to purchase. That would be a huge amount of equity right out the gate.

Once upon a time, Teslas were novel/ unique enough to put them on Turo and get a big premium. Now they are common enough they still demand a small premium because they are nice cars, but not the oversized returns you used to get.

Cybertruck will almost certainly follow a similar pattern, for the first couple of years, you might be able to demand a lot and get it. After a year or two, prices will come down as more and more come available.

If I can get a big enough premium, I might put mine on Turo for a while. It’s weird because I was planning on using Tesla insurance and that means renters would affect my insurance rates which could well cost more than the rental returns. Just picturing everyone who rents a Cybertruck pushing the limits hard, if I spent a big premium to rent a truck for a few days, I would.

Your first 3 trucks may well be quite profitable, but I’m skeptical you will be able to make a huge big premium on the 2020 and later reservations. There will just be a lot of Cybertruck on the road by the time you get them.

 

[papajamaliciousness]

Not the OP here, but just guessing that he’s looking for investors. Buying 5-10 new trucks is going to require a bunch of cash. Interest rates are rising fast and getting a small business loan when you need $600,000+ in capital for inventory is going to be a big ask. Plus space to park and charge them, etc.

I'm willing to help with parking and possibly charging and driving...

Thanks! To answer your question, I basically need funding. I don’t think I can get personal funding for all of those cyber trucks. I can buy one at a time, and get them rolling, but I’m not a businessman either. Ha ha. Originally I planned just flip them hoping that by the time I was forced to purchase one but the price of FSD would be $25,000 or more. That may still be the case. I would love to see a $20k FSD by January. I’ll see how far I can take it. But basically the value here is in locking down the price of FSD. Now I need just someone to fund purchasing the trucks and setting up the business etc. I’ve got the early reservations. And that’s where a large part of the value is.

Ah okay. Yeah I'm not able to help with funding your Cybertruck army but I have nothing against you seeing an opportunity and trying to benefit financially from it. Maybe Leonardo DiCaprio or some other multi-millionaire forgot to reserve a Cybertruck and the day he sees one driving in the wild he will be eager to pay you triple the price for one, and if so great. It's not like you're oppressing the downtrodden of the earth if you sell a Cybertruck to some millionaire for double or triple the original price and allow him to skip the line. On the other hand if it's against the agreement with Tesla then obviously there are potential issues with doing that. You could probably flip one or two under the radar but after that you might want to expect some legal pushback from Tesla. Could get extremely expensive. I don't really have a moral issue with it. It's called arbitrage, happens every day.

I thought you wanted to make a company to rent Cybertrucks in some offroad destination like the Grand Canyon. That would be awesome. There might be a way to get the money to do your business, whatever it is. Here we are a bunch of enthusiasts so we might not be the best audience for that. If you just buy one extra and put it on Turo then potentially you would have a pretty good income stream.

I could be wrong but I am thinking speculating on the rising price of FSD is not a good business model. I wouldn't put a penny into that. I have been wrong before so... The way I see it in 25 years FSD will be an expected free feature, available not only from Tesla but also from several other competing companies.

Anyway I think it's cool that you saw what you thought was an opportunity and jumped on it. That is the essence of being an entrepreneur. Obviously moral issues would come into play if you somehow oppressed people or something, but to me there is no evidence that you are doing that, and you are not harming any of the other people who ordered Cybertrucks, and I don't believe it's right for people to blame you for all the ills of capitalism just because you tried to make a business. You paid your $100 (X 25 I guess) for a bunch of places in line. Anyone else could have done the same thing but not everybody else had the courage or imagination to do it. I don't know if it will work out but it's all fine, the worst case I foresee for you is that you get 20 or 25 deposits back and get back a couple grand.

 

[earthman]

Once upon a time, Teslas were novel/ unique enough to put them on Turo and get a big premium. Now they are common enough they still demand a small premium because they are nice cars, but not the oversized returns you used to get.

Cybertruck will almost certainly follow a similar pattern, for the first couple of years, you might be able to demand a lot and get it. After a year or two, prices will come down as more and more come available.

If I can get a big enough premium, I might put mine on Turo for a while. It’s weird because I was planning on using Tesla insurance and that means renters would affect my insurance rates which could well cost more than the rental returns. Just picturing everyone who rents a Cybertruck pushing the limits hard, if I spent a big premium to rent a truck for a few days, I would.

Your first 3 trucks may well be quite profitable, but I’m skeptical you will be able to make a huge big premium on the 2020 and later reservations. There will just be a lot of Cybertruck on the road by the time you get them.

Thanks 1 million for the input. Yeah I see clearly exactly what you’re saying and pretty much agree. Especially on that note of insurance. Something for consideration, hadn’t thought of.

 

[papajamaliciousness]

I have never heard of Tesla changing prices in response to demand, per se, but they have changed prices in response to other market conditions such as inflation or supply-chain issues. For example, they increased prices to reduce demand since they cannot keep up with demand and thus they cannot guarantee the price they quote out as far as the demand takes them, so that increase accommodates price uncertainty. Your statement makes them out to be money-grubbing like legacy automakers. The difference, as Tesla puts it and is oft said on this forum, is that Tesla's goal is to keep prices as low as possible and that runs contrary to the assumption that they raise prices to make more money.

In the end, you are entitled to your opinion and position, and I to mine. I wasn't expecting to make any friends when I expressed my view, but I felt compelled to do so none the less.

I believe if you read between the lines Tesla is deliberately raising prices to reduce demand, since they cannot keep up with demand. I believe the number of price increases is a function of their backlog as much as it is a function of their vendor price increases. When their backlog decreases I believe they may begin to reduce prices, or at least start producing other models that are cheaper.

 

[earthman]

I'm willing to help with parking and possibly charging and driving...



Ah okay. Yeah I'm not able to help with funding your Cybertruck army but I have nothing against you seeing an opportunity and trying to benefit financially from it. Maybe Leonardo DiCaprio or some other multi-millionaire forgot to reserve a Cybertruck and the day he sees one driving in the wild he will be eager to pay you triple the price for one, and if so great. It's not like you're oppressing the downtrodden of the earth if you sell a Cybertruck to some millionaire for double or triple the original price and allow him to skip the line. On the other hand if it's against the agreement with Tesla then obviously there are potential issues with doing that. You could probably flip one or two under the radar but after that you might want to expect some legal pushback from Tesla. Could get extremely expensive. I don't really have a moral issue with it. It's called arbitrage, happens every day.

I thought you wanted to make a company to rent Cybertrucks in some offroad destination like the Grand Canyon. That would be awesome. There might be a way to get the money to do your business, whatever it is. Here we are a bunch of enthusiasts so we might not be the best audience for that. If you just buy one extra and put it on Turo then potentially you would have a pretty good income stream.

I could be wrong but I am thinking speculating on the rising price of FSD is not a good business model. I wouldn't put a penny into that. I have been wrong before so... The way I see it in 25 years FSD will be an expected free feature, available not only from Tesla but also from several other competing companies.

Anyway I think it's cool that you saw what you thought was an opportunity and jumped on it. That is the essence of being an entrepreneur. Obviously moral issues would come into play if you somehow oppressed people or something, but to me there is no evidence that you are doing that, and you are not harming any of the other people who ordered Cybertrucks, and I don't believe it's right for people to blame you for all the ills of capitalism just because you tried to make a business. You paid your $100 (X 25 I guess) for a bunch of places in line. Anyone else could have done the same thing but not everybody else had the courage or imagination to do it. I don't know if it will work out but it's all fine, the worst case I foresee for you is that you get 20 or 25 deposits back and get back a couple grand.

I love your post. Yes you see very clearly, you nailed it. We’re definitely on the same page. It’s almost worth just funding those three original ones, and then moving to a city, where the market is hot, and renting a little place and just running those 3 vehicles 24/7 rented.

 

[GlockandRoll]

I have a question OP.

Do you have much experience as a Turo host?

I've been a host a few times going back to about 2018, and a member of the big Turo host group on FB.

 

[GlockandRoll]

I have a question OP.

Do you have much experience as a Turo host?

I've been a host a few times going back to about 2018, and a member of the big Turo host group on FB.

 

[earthman]

I have a question OP.

Do you have much experience as a Turo host?

I've been a host a few times going back to about 2018, and a member of the big Turo host group on FB.

None I have no experience with that at all. Ha ha. Why do you ask?

or, er, what’s the name of that Facebook group, would love to join to learn, etc.

 

[bad61]

Disagree. I locked in at $7k and $10k.

I agree. I think the fsd should be locked. Price of truck is something else. Elon said over and over lock in now price will be going up.

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