The flippers will cancel. But I expect backlog will refill when car is on street and in reviews.
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Tesla's Supercharger Team was recently laid off. We discuss what this means for the company on today's TMC Podcast streaming live at 1PM PDT. You can watch on X or on YouTube where you can participate in the live chat.
Large corporations buying up massive quantities of Model 3s to create a fleet - ride share companies. Imo this cheapens the brand as most people will be most frequently seeing the Model 3 in service as a rather boring cookie-cutter taxi mobile. You may disagree, but there is power in product association among the masses. All those that see the car as an "aspirational" brand will think twice if, early on, streets are flooded with them purposed for ride sharing service.
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@Joao - The "cost" for Tesla to transfer a reservation from one person to another is negligible vs the cost of losing a sale. There really isn't a "cost" of allowing transfers in terms of labor for Tesla.
@zenmaster - I do disagree. First, the logistics of a fleet operation contacting a hundred reservation owners is kind of far fetched. Second, I dont think Tesla would mind at all if a taxi service wanted to use model 3s - in fact I think Tesla would be in support of that.
Look - I dont know if Tesla will allow the transfer or not - but I will say that I think the positives FAR outweigh the negatives for them and I would be surprised if they don't have a process for doing so.
@zenmaster - I do disagree. First, the logistics of a fleet operation contacting a hundred reservation owners is kind of far fetched. Second, I dont think Tesla would mind at all if a taxi service wanted to use model 3s - in fact I think Tesla would be in support of that.
Look - I dont know if Tesla will allow the transfer or not - but I will say that I think the positives FAR outweigh the negatives for them and I would be surprised if they don't have a process for doing so.
MP3 - that is exactly what I think will determine how Tesla decides to allow transfers or not.
I do think my BIL would buy it and wait a year to get it. But some certainly would not.
Keep in mind, that if Tesla doesn't allow transfers, and 100% of people still got in line to buy - there is bad press and negative transactional costs associated to the cancellations. I understand the net is the same for cars delivered, but as an officer of a public company I can tell you that our decisions are most often driven by market perception and not reality.
I do think my BIL would buy it and wait a year to get it. But some certainly would not.
Keep in mind, that if Tesla doesn't allow transfers, and 100% of people still got in line to buy - there is bad press and negative transactional costs associated to the cancellations. I understand the net is the same for cars delivered, but as an officer of a public company I can tell you that our decisions are most often driven by market perception and not reality.
There's a headline either way. If they allow transfers, there will be private profiteering by some reservation holders and cries of inequity from people who waited in line to buy a car for themselves. Personally I think this car will be make to order for years and supply constrained, so it makes no difference to bottom line. Comes down to corporate philosophy. And, so far, the Tesla precedent is not to allow transfers.
It is a really interesting conversation with many angles to look at. Certainly - there is no right or wrong answer - and I am sure the Tesla board room is throwing this conversation around also.
I think the buzz created by a black market of selling reservations might help Tesla. I know how that will be received here... But let me explain....
Every year you hear blurbs on the news "Cubs make World Series, tickets go for 8k!" or something like that. I don't think this diminishes the image or value of baseball itself, it creates a buzz around the perceived value (high) of baseball which only helps, and a news story doesn't hurt either.
Imagine headlines and local news stories of "Tesla Model 3 reservations being sold for 5k on Ebay!". I understand how that makes posters on this forum stomach turn over, but for the average Joe it introduces them to a car that they might not have known about, and an immediate perceived value attached to that car that advertising dollars can't buy.
To your point Tomas - if you are at max capacity producing cars - the length of the line is really not that important to financials. But don't understimate the perceived value of the length of the line. Ever go to a local restaurant that always has a line and think "they could fix this line if they just XYZ"? They don't want to fix the line. The line represents perceived quality and value. Once again, free advertising.
All interesting conversation. I think Tesla will put a lot of thought in to this also and come out with a statement soon.
I think the buzz created by a black market of selling reservations might help Tesla. I know how that will be received here... But let me explain....
Every year you hear blurbs on the news "Cubs make World Series, tickets go for 8k!" or something like that. I don't think this diminishes the image or value of baseball itself, it creates a buzz around the perceived value (high) of baseball which only helps, and a news story doesn't hurt either.
Imagine headlines and local news stories of "Tesla Model 3 reservations being sold for 5k on Ebay!". I understand how that makes posters on this forum stomach turn over, but for the average Joe it introduces them to a car that they might not have known about, and an immediate perceived value attached to that car that advertising dollars can't buy.
To your point Tomas - if you are at max capacity producing cars - the length of the line is really not that important to financials. But don't understimate the perceived value of the length of the line. Ever go to a local restaurant that always has a line and think "they could fix this line if they just XYZ"? They don't want to fix the line. The line represents perceived quality and value. Once again, free advertising.
All interesting conversation. I think Tesla will put a lot of thought in to this also and come out with a statement soon.
timk225
Active Member
Elon is the CEO, he gets the first car, and none of you have to like it. At least that is what I would be saying if I were in Elon's place. That first 3 would be a special color, D, ludicrous, and have satellite radio on a metal roof panel, despite that combo being "not available" for the general public.
WierdMobile
Duel Motors
If you haven't reserved yet and want to get your car sooner, Tesla provides a way to do that: buy a Model S or X now, and choose every (available) option for the 3 when invited to configure.
Allowing people to sell reservation spots allows people who have more money than patience to transfer some of that money to other reservation holders in order to change spots in line, which gains Tesla nothing, instead of forcing those people to give money to Tesla to get their car sooner.
If someone you know wants a Model 3, and you don't want to go through with buying the car on their behalf, I would suggest having them place their own reservation now. That way if Tesla doesn't let you transfer the reservation, they won't be at the very back of the line.
As for the consequences of Tesla not allowing transfers: I don't think it will hurt Tesla at all. Tesla has been pretty clear that you shouldn't expect to be able to transfer the reservation. And people cancelling just makes the line shorter so that other people can get their cars sooner, which will likely result in other people reserving who are willing to wait. Tesla won't start to feel it untill the line is so short that you can't say "the wait to get my car is too long" with a straight face.
Allowing people to sell reservation spots allows people who have more money than patience to transfer some of that money to other reservation holders in order to change spots in line, which gains Tesla nothing, instead of forcing those people to give money to Tesla to get their car sooner.
If someone you know wants a Model 3, and you don't want to go through with buying the car on their behalf, I would suggest having them place their own reservation now. That way if Tesla doesn't let you transfer the reservation, they won't be at the very back of the line.
As for the consequences of Tesla not allowing transfers: I don't think it will hurt Tesla at all. Tesla has been pretty clear that you shouldn't expect to be able to transfer the reservation. And people cancelling just makes the line shorter so that other people can get their cars sooner, which will likely result in other people reserving who are willing to wait. Tesla won't start to feel it untill the line is so short that you can't say "the wait to get my car is too long" with a straight face.
With more reservations than they can build and sell in the next year and half I'm sure Tesla does not need any more buzz. When someone buys world series tickets from someone else at some inflated price it is one private person selling to another, the baseball team isn't involved in the deal in any way. I can imagine there would be more negative buzz attached to the perception that Tesla is, even if indirectly, promoting and facilitating a black market on reservation transfers.
Waiting4M3
Active Member
If you BIL can not have your reservation, you end up canceling one, and your BIL goes to the end of the line, there may be a chance of your BIL deciding not to buy the car, but everyone (maybe 100Ks of people) behind you just moved up 1 spot, and will each get their cars slightly earlier, decreasing the chance of one of them canceling. Compound this effect for the 100Ks of people behind you, it might just make up for the 1 sale that Tesla lost by not letting your BIL take your spot in line. I think in the end the net effect is very little, no point for Tesla to allow transfer, it won't matter to them.
Most businesses know this - a personal referral is priceless. Getting those in and allowing word-of-mouth spread is better than any PR campaign.
Allowing for a reasonable transfer program -- say requirement of original reservation holder be at delivery and coordinate all aspects until completion. ie the configuration stays on the current reservation account -- but the final registration/title is what is named in the configuration. and the holder of the reservation remains the POC and coordinator
Allowing for a reasonable transfer program -- say requirement of original reservation holder be at delivery and coordinate all aspects until completion. ie the configuration stays on the current reservation account -- but the final registration/title is what is named in the configuration. and the holder of the reservation remains the POC and coordinator
FlatSix911
Porsche 918 Hybrid
From Electrek ... Tesla is prioritizing Model 3 deliveries to employees, but they can’t resell for a profit
As we previously reported, Tesla will be prioritizing early Model 3 deliveries for their employees, which is a welcomed initiative for many of them since the Model 3 is, in some cases, the first Tesla vehicle that they can afford.
Tesla started informing their employees of the process to get a priority delivery, but they are also now informed that they cannot resell the vehicles for a profit. The automaker opened up Model 3 reservations to both Tesla and SpaceX employees (and their families) a few weeks ahead of the general public. Data showed that the employees likely made over 10,000 reservations before the general public made that number blow up to an estimated 500,000 based on deposits as of last quarter. Through our tip line, we received an email that Tesla has been sending to employees about Model 3 reservations:
All,
Each employee reservation holder will receive an email the evening of July 28 with details regarding their Model 3 reservation. Deliveries of Model 3 will be generally prioritized by geography, starting with owners registered in California or those taking deliveries at Fremont. Because employees are receiving special priority, all Model 3 cars prioritized to employees must be registered to you or your family member and may not be resold for more than the original price. Reservation holders will agree to these terms when their order is placed.
Please note the following to ensure that you can access your Model 3 reservation on your Tesla account and receive employee priority:
If you placed your Model 3 reservation under your company email address, no action is needed. If you placed your Model 3 reservation under a personal email address, please log in to your Tesla account and update your “Account Email” to your work email address.
If you have questions regarding your reservation, visit the Tesla Support site. Tesla will send more details on delivery plans, FAQs, and reservation updates after Friday.
Thank you!
As we previously reported, Tesla will be prioritizing early Model 3 deliveries for their employees, which is a welcomed initiative for many of them since the Model 3 is, in some cases, the first Tesla vehicle that they can afford.
Tesla started informing their employees of the process to get a priority delivery, but they are also now informed that they cannot resell the vehicles for a profit. The automaker opened up Model 3 reservations to both Tesla and SpaceX employees (and their families) a few weeks ahead of the general public. Data showed that the employees likely made over 10,000 reservations before the general public made that number blow up to an estimated 500,000 based on deposits as of last quarter. Through our tip line, we received an email that Tesla has been sending to employees about Model 3 reservations:
All,
Each employee reservation holder will receive an email the evening of July 28 with details regarding their Model 3 reservation. Deliveries of Model 3 will be generally prioritized by geography, starting with owners registered in California or those taking deliveries at Fremont. Because employees are receiving special priority, all Model 3 cars prioritized to employees must be registered to you or your family member and may not be resold for more than the original price. Reservation holders will agree to these terms when their order is placed.
Please note the following to ensure that you can access your Model 3 reservation on your Tesla account and receive employee priority:
If you placed your Model 3 reservation under your company email address, no action is needed. If you placed your Model 3 reservation under a personal email address, please log in to your Tesla account and update your “Account Email” to your work email address.
If you have questions regarding your reservation, visit the Tesla Support site. Tesla will send more details on delivery plans, FAQs, and reservation updates after Friday.
Thank you!
