Tesla Employees To Receive Model 3 Priority, Can’t Resell Car For Profit

Tesla Model 3

JUL 27 2017 BY ERIC LOVEDAY 35

Tesla Model 3

Elon Musk’s Tesla Model 3 – Serial Number 0001

Elon Musk is the highest profile Tesla employee and he’s already received his Model 3, but Tesla is now providing details on how its other employees will get special priority for Model 3 delivery.

It’s long been known that some Tesla employees with Model 3 reservations would jump the line, but now we a sense of the plan, as laid out in email from Tesla corporate to employees with reservations.

Tesla Model 3 Event Party Details

Here are the highlights:

  • 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.

Basically, employees get special priority, starting with those closest to the Tesla factory. Model 3s obtained by employees can be resold, but not for more than MSRP.

Here’s the email in its entirety via Teslarati:

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!

We’ll be on the scene for the event tomorrow night from when the doors open at 7 PM, as well as livestreaming the event here around 8:45PM, so check in with us as the action unfolds in real time.

Source: Teslarati

Categories: Tesla

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35 Comments on "Tesla Employees To Receive Model 3 Priority, Can’t Resell Car For Profit"

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“Model 3s obtained by employees can be resold, but not for more than MSRP.”

This is an UN-enforceable policy. Sell the car officially for msrp, and get the additional funds in the form of cash. People who would pay above msrp for a slightly used Model 3 certainly would have the money to do this.

A written contract certainly is enforceable. That’s what civil court is for.

And since this applies only to Tesla employees, obviously Tesla also has the threat of firing them.

No. It’s not enforceable. Contracts cannot override the law. And the law says if it is yours you can sell it. If they leased it then they could control the disposition of it. But if they sell it it’s out of their hands. And if you lease it it doesn’t stop people from permanently loaning it to someone else. This is not the first car to be sold like this. We’ve seen it play out over and over. There have been a lot of cars like the BMW Z8, Ferrari Enzo or the Ford GT where they tried to control who got it to keep it from being scalped. Ferrari went to great lengths, starting with the “we’re only selling it to good customers/friends” and the implication that if you resell it you will no longer be a good friend. Then they went to leasing. With the FXX they even went to an arrangement where you don’t even lease it, you just are paying for the right to use it when you want. If you want to use it you call them and they will arrange for you to drive it and then take it back when you are done.… Read more »

The un-enforceability isn’t likely to be a big problem…

Say the premium is 20% (that’s what is frequently is on sold-out new gadgets like game consoles etc.)…
If you’re the seller, but the written contract you have with the buyer says he only pays the (say) ~$40K MSRP, why would you trust him/her to pay you after the transaction closes and the car’s been re-registered another $8K cash under the table?

Have you ever bought or sold a used car or motorcycle? this occurs pretty frequently especially in cash transactions. You agree on the price, the cash is handed over, the bill of sale reflects a lower price. This allows the buyer to also pay a lower tax amount to register the car. My point isn’t that Tesla can’t require this of their employees. Although I don’t know that they can fire employees who violate this unless it is a requirement of their employment.

Silly people.
Bought my L2 EVSE for $20,000 back in 2013, and did the optional add-on for an almost-new Volt for $5,000.

Sell it for MSRP, but pocket the fed credit. Good deal- less taxes. $3k flip which is not worth ticking off Elon if you’re an employee.

It’s illegal to claim the tax credit if you purchase for flipping. So they’d at least have to wait long enough to make it credible.

How long is “long enough”? What if you have a family of 4, then find out your wife is pregnant the day after you take delivery of your 3 and have to upgrade to a bigger car?
What if someone buys a 3, then ends up hating it, and wants to get rid of it after a month? Is that long enough?

If that happens they can sell it. Just not for a profit.

I wonder how long it will take, before The Toyota or Ford Engineers get their hands on one of these, for disassembley and technical evaluation, in the resale market?

Ford paid way over MSRP for a Model X when they were first released, so I can see it happening.

They’re not even doing it themselves that much. There are several US companies that reverse engineer cars and sells the info to anybody that pays..
Chinese companies can then produce a car with no engineering cost what so ever – and since they don’t care about copyright they may change some of the looks.. and that’s it. Steel, rubber and plastics are usually of a much lower quality..

One company is: http://jalopnik.com/the-fascinating-company-that-tears-cars-apart-to-find-o-1787205420

Too bad Tesla is requiring that employees agree not to resell these cars above MSRP. I’d love to see what one would go for on an auction site! Would someone with far more dollars than sense pay a million dollars USD or more for a very early production Model 3?

“Be the first billionaire on your block in your state to own this…” 😉

How can Tesla really enforce the “MSRP or less” resale requirement? What’s to stop an employee from telling a prospective buyer “OK, this Model 3 stickered for $41k, so if you want it you can pay $41k*”

*and if you bring some bundles of benjamins in a black suitcase, that may help your chances!

The car is $41k however the right to buy it costs you an additional $25k.

It’s like the foie gras ban they had in CA (or was it just LA?) Anyways, restaurants still served it. They gave it to you for free but charged you $20 for the bread 😀

Sell it to a friend for MSRP, who can auction it off. Then they can share the profits.

I’m sure it they sell it quick, they can get a really nice profit.

The only enforcement they will have is to fire you. So if one would really go for a million dollars there’s no reason we won’t see one sold.

Plenty of people would give up their jobs and cars for a million or two. There only has to be one such person in this group for the sale to be made.

Dodge Demon already paved the way to how to skirt the system…Essentially use a friends ebay account to create an auction for the “privilege” to purchase the vehicle at MSRP…

http://www.motorauthority.com/news/1111699_learn-how-dealers-use-ebay-as-loophole-for-dodge-demon-markups

There’s other ways to do it too.

But in this case they are Tesla employees. If they do anything like that they’ll be fired. You can always compensate someone enough that they will accept losing their job. But that’s going to be a pretty high bar I would think.

I would be curious to see how much one of the first ~30 Model 3’s would fetch on Ebay. I mean people pay 6 figures for a potato chip shaped like a freaking ape for crying out loud!

There are many ways to do it and additionally you have to wonder who at Tesla is going to combing through various for auto/non-auto for sales sites…

Then where is the big money? Overseas…A rich Arab car collector would pay an ungodly amount of money to get their hands on ultra low VIN…You don’t technically have to “sell the car” to ship it overseas and it’ll hard for Tesla to monitor overseas activity…

Anyone with half a brain can figure out what Tesla is doing. These don’t count as deliveries. Tesla is still 1-2 years behind original promised delivery schedule. They’re skipping the final street prototype phase which lasts about 1 year. According to Elon it’s because they’re “innovating” and not following standard practice. BS. Pure PR stunt, and in typical InsideEVs fashion, praised as the second coming of Jesus. With employees getting priority, it’s obvious they’re being used to beta/perform the final street testing. Most likely they’re all required to sign an NDA and not make any mention of it nor discuss all the fixes they need done to the cars before actual public deliveries begin. Genius schedule and product development method? Perhaps. Downright dishonest? You bet. It’s odd that people think he’s transparent and honest. I mean, he’s not even a scientist or engineer but he keeps pretending to be some real life Tony Stark. His whole public image is a lie. He’s more akin to Obadiah Stane, not Tony Stark. Elon is the most opaque person in existence. It’s all about the PR stunts and stock price manipulation for him. If you track Tesla announcements/Elon twits.. er I mean tweets…… Read more »

The “cutting edge technology” or whatever Musk called it that allows Tesla to skip the 6-12 month pre-production testing phase most other traditional manufacturers perform to shake down the vehicles by logging hundreds of thousands of real world miles? Simply computer simulations.

Anyone with half a brain can figure out what Tesla is doing. These don’t count as deliveries. Tesla is still 1-2 years behind original promised delivery schedule. “They’re skipping the final street prototype phase which lasts about 1 year. According to Elon it’s because they’re “innovating” and not following standard practice. BS. Pure PR stunt, and in typical InsideEVs fashion, praised as the second coming of Jesus.” Not really. Audi did similar and successful “simulation” on a new Mexican plant and production line and it worked well. Tesla hired Peter Hochholdinger the Audi engineer/exec. who ran the program. “With employees getting priority, it’s obvious they’re being used to beta/perform the final street testing.” That was always the plan along with current owners who Tesla trusts to provide feedback. Nothing wrong with that from a consumer standpoint. The risk for Tesla is some flaw that will delay further production might be discovered which will throw off the production schedule. I do agree that these early deliveries to not appear to be actual sales as the NHSTA ratings are not out yet and they have to be on the stick for retail sales. They could be completed but not posted on NHSTA… Read more »

While I agree in part no way are they going to be 1-2 years behind schedule.

As soon as they’re selling cars to the average person is when I think the 1st car should truly be counted as delivered. Otherwise this in my mind is just an extended testing period.

And ya, good luck actually enforcing this. Especially in CA! I will say though that if you are a Tesla employee and you get one and then all of a sudden stop showing up to work in it I would suspect you’ll get a ton of crap!

While I agree this is stretching the term of being delivered, suggesting Tesla is a whole year behind schedule is over the top. If they were really that far behind schedule there would be little point pulling a stunt like this, because it would become obvious in due course.

I could buy that they’re a few months behind schedule, and we might not see deliveries to the public until the end of the year.

I see we have a new troll in this new username- me.

Actually, its likely one of the existing serial anti-Tesla trolls like Spiegel or sven simply cowardly posting under anew username to simulate more trolls.

I hope the moderators delete their trolling post.

Get Real> “moderators delete”
If you want censoring of every free thought to fit your party/cult line, you can still move to North Korea. Everybody speaks the same Truth and worships One Great Leader there, just like you want.

“Ratings from the National Highway Traffic Safety Administration (NHTSA) are required before a car can be sold in the Unites States and those ratings must be displayed on a car’s window sticker.”

Are the Model 3 deliveries really sales at this point as there is no NHSTA published rating yet and no EPA rating yet either.

The “July sales” is really August delivery but OK, a month later is not really a big deal and Tesla is building the cars though the predicted 25,000-35,000 in 2017 seems unlikely now.

It could be Tesla requested the EPA/NHSTA withhold publishing official ratings until after the reveal tomorrow.

Anyways, SOMEONE at the EPA already knows the range numbers of the Model 3.

These 30 or so “deliveries” are to friends and they may use whatever legal workaround not register them as real deliveries if they want it.

As the car is not in mass production yet, they may need to change it later, and then what, redo all the EPA tests and certifications after testing is completed?

I think the non performance model names for Model 3 are going to be in this format – BT75 or BT60 and for dual motor, BT75D, BT60D

I can’t believe these employees actually pay MSRP. Typically the first 100 cars are not sold at all, but remain the property of the company and employees are paid to be beta testers. These cars will remain in the employee possession so will be worth something to them but they should be getting them for half price (or less).

I take that back, we’ve seen M3s driving around, those would be the beta test cars and these should be the real mcoy