Profit protection against resellers/scalpers.

[Deleted member 3316]

With the considerable order list / pent up demand, the Cybertruck is going to be at risk of profit gouging by resellers/Scalpers.

What mechanisms could Tesla employ to mitigate missing out on profit potential? (Without pricing out genuine reservation holders)

As a way to honour and secure genuine customer orders I believe a two part intervention strategy could be implemented.

1. A clearly articulated and restrictive clause in the contract of sale that disincentivises on selling for a stipulated time frame (12-18months)
2. A small proportion of monthly production allocated to delivery centres that are only available at auction.

Intervention 1. Reservations

1. I envision a 12-18 month lock out for transfer of ownership.
2. If transfer/sale is required because of financial distress the vehicle can be returned to Tesla for a full refund.
3. Any returned vehicles can be placed in inventory and sold through the auction process.

Intervention 2. Auctions

1. The auctions would be online for vehicles ready to be delivered.
2. Full amount must be paid in order to bid.
3. That bid would be placed in escrow and refundable or transferable to subsequent auctions should initial bids fail.
4. Each delivery centre monthly allocation would be auctioned simultaneously.
5. Only a limited number (3-5?) of bids could be made per auction to prevent sniping lowest bids.
6. Subsequent bids must match or better 90% of winning bids. Or set rate for bidding. ~$700 increments.
7. Minimum bid would be list price for that delivery centre.
8. Contract of sale would include the current resale clause.

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[CyberC]

No way. As a foundational matter, it's getting pretty tiring watching the normalization of car manufacturers still having some say over what I own after I buy it.

Second, Tesla shouldn't expect any consumer to be more loyal to them than they are to any given consumer. Tesla didn't give me any special discount or treatment on my Model Y because I've owned a Model S since 2015. Why should I give them any special treatment just because I'm an early reservation holder for an in-demand product?

I'm buying the CT in good faith. If I genuinely don't like it, I'm definitely reselling it immediately at whatever price the market will tolerate. No way am I signing or endorsing any restriction on my ability to do that. And if I am forced to sign something like that, I'm disregarding it if I need to. Let them sue me.

 

[Ehninger1212]

If someone who didnt get a reservation wants to pay me 30-40k over MSRP for my truck. they can have it and I don't want any manufacturer telling me I cant sell it.

 

[fhteagle]

OPs poll options are clearly biased toward a "Yes", and missing appropriate "No" reasons.

I vote No, because the free market working efficiently is more important than Tesla restricting their customers. If I decide I don't like the CT after delivery, it's MY choice what to do with my property, not Tesla's. If I want to sell it to my neighbor, or on eBay, or trade it in at a stealership, or whatever, that's my prerogative.

Sure an easy return policy would be great, but not if that's my only option.

After sale restriction/covenant/contract will be a hard stop on my purchase process. Period.

 

[Deleted member 3316]

No way. As a foundational matter, it's getting pretty tiring watching the normalization of car manufacturers still having some say over what I own after I buy it.

Second, Tesla shouldn't expect any consumer to be more loyal to them than they are to any given consumer. Tesla didn't give me any special discount or treatment on my Model Y because I've owned a Model S since 2015. Why should I give them any special treatment just because I'm an early reservation holder for an in-demand product?

I'm buying the CT in good faith. If I genuinely don't like it, I'm definitely reselling it immediately at whatever price the market will tolerate. No way am I signing or endorsing any restriction on my ability to do that. And if I am forced to sign something like that, I'm disregarding it if I need to. Let them sue me.

The main reason Tesla prices are so high is because pent up demand is enabling exorbitant secondhand profiteering.

How then do Tesla ensure they get the profit due to them (market value) whilst also honouring the reservation system?

 

[Deleted member 3316]

1,600,000 reservation holders….

 

[Deleted member 3316]

If someone who didnt get a reservation wants to pay me 30-40k over MSRP for my truck. they can have it and I don't want any manufacturer telling me I cant sell it.

Yes, this is the whole point of my post. How does Tesla retain the profit that is due to them?

 

[Deleted member 3316]

OPs poll options are clearly biased toward a "Yes", and missing appropriate "No" reasons.

I vote No, because the free market working efficiently is more important than Tesla restricting their customers. If I decide I don't like the CT after delivery, it's MY choice what to do with my property, not Tesla's. If I want to sell it to my neighbor, or on eBay, or trade it in at a stealership, or whatever, that's my prerogative.

Sure an easy return policy would be great, but not if that's my only option.

After sale restriction/covenant/contract will be a hard stop on my purchase process. Period.

How would you feel if that attitude forced Tesla into only leasing Cybertruck to reservation holders for the first few years of production?

If you want to buy outright, you would only be able buy at auction on Tesla site.

Your hard stop would be the exact result intended. There’s a supply problem, not demand.

 

[SolarWizard]

The main reason Tesla prices are so high is because pent up demand is enabling exorbitant secondhand profiteering.

How then do Tesla ensure they get the profit due to them (market value) whilst also honouring the reservation system?

false there is absolutely zero pent up demand for any vehicle tesla makes currently and yes in the US they cost much more than their asian counterparts

 

[SolarWizard]

Yes, this is the whole point of my post. How does Tesla retain the profit that is due to them?

they choose a price and sell it.
is this really something you’ve spent time worrying about?

 

[CyberGus]

Tesla already impedes "scalping" by refusing sales to buyers that have fast turnarounds. So you can get away with it at least once...at the risk of being blackballed.

 

[Deleted member 3316]

false there is absolutely zero pent up demand for any vehicle tesla makes currently and yes in the US they cost much more than their asian counterparts

Tesla have had close to 30% profit margins, where as most of the legacy manufacturers are sub 10%. This is a function of demand.

As is demonstrated by the price reductions in China there is significant pent up demand at the right price. Inventory is averaging 17days supply Tesla want it around 10days.

What’s the industry average? Hint: Measured in months.

 

[Deleted member 3316]

Tesla already impedes "scalping" by refusing sales to buyers that have fast turnarounds. So you can get away with it at least once...at the risk of being blackballed.

Yes but with 1.6million reservations people with two reservations won’t care if they’re blackballed for the one they sell.

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