Photo: @johnclaywolfeshow via Instagram
Despite Tesla's no-resale clause, many Cybertruck owners risked and flipped their electric pickup. Recently, one Cybertruck was flipped twice, once by its original owners and then by the company that bought it. However, the Porsche dealership that won the auction might have made a terrible deal, as more Cybertrucks hit the grey market.
Tesla correctly anticipated that the Cybertruck's appeal would turn many early owners into flippers. This is why it came up with the no-resale clause in the sales contract. Based on this, people were prohibited from reselling their Foundation Series Cybertruck in the first year after delivery unless cleared by Tesla. If they breach this rule, they owe Tesla $50K or whatever they make from the sale if it's more than that. Despite this, legal experts think the clause is difficult to enforce, which explains why so many people have sold their Cybertrucks or want to.
While many Cybertrucks changed hands under the radar in obscure transactions, they have come out of the closet lately. People have become more daring, and last week, we saw a Cybertruck sold at a Manheim auction. The seller of that particular truck told its story in a viral video, which only encouraged other Cybertruck owners to sell their trucks.
If you remember, the Cybertruck was bought by Give Me the VIN, one of the major vehicle wholesalers in the US, from its original owner. The company's owner, John Clay Wolfe, explained in the video how they bought several Cybertrucks and why Tesla's no-resale clause is unlikely to be enforced. Only one Cybertruck was auctioned off at Manheim, and the winner was a Porsche dealer in Orlando, which paid $244K for it. Sure enough, the same Cybertruck was back on the market days after the auction closed, this time listed for $290K.
If you thought there was no ceiling to the Cybertruck's price, well, the Porsche dealer owners felt the same. Unfortunately for them, Wolfe's video encouraged more people to sell their Cybertruck, and the prices are now in free fall. Give Me the VIN bought two more Cybertrucks since the Manheim auction, and they sold for $195,500 and $189,000, respectively.
This means there's no way the Porsche Orlando dealership will be able to break even on the Cybertruck they won at the Manheim auction. We've seen this with other high-profile car models that were flipped for profit or sold above the MSRP. It's hard, if not impossible, to time the market, and some people almost always get burned. Unless the market starves again in the coming months, the Porsche dealer will also have to cover its losses.
We're not sure what the actual market value of the Cybertruck is right now. However, as Tesla ramps up production and more people try to make money from flipping their Cybertruck, the prices will only go in one direction: down. This trend only changes if Tesla steps in and sues the flippers. In that case, the trucks already sold will turn into gold because they are no longer bound by the no-resale clause.
While many Cybertrucks changed hands under the radar in obscure transactions, they have come out of the closet lately. People have become more daring, and last week, we saw a Cybertruck sold at a Manheim auction. The seller of that particular truck told its story in a viral video, which only encouraged other Cybertruck owners to sell their trucks.
If you remember, the Cybertruck was bought by Give Me the VIN, one of the major vehicle wholesalers in the US, from its original owner. The company's owner, John Clay Wolfe, explained in the video how they bought several Cybertrucks and why Tesla's no-resale clause is unlikely to be enforced. Only one Cybertruck was auctioned off at Manheim, and the winner was a Porsche dealer in Orlando, which paid $244K for it. Sure enough, the same Cybertruck was back on the market days after the auction closed, this time listed for $290K.
If you thought there was no ceiling to the Cybertruck's price, well, the Porsche dealer owners felt the same. Unfortunately for them, Wolfe's video encouraged more people to sell their Cybertruck, and the prices are now in free fall. Give Me the VIN bought two more Cybertrucks since the Manheim auction, and they sold for $195,500 and $189,000, respectively.
This means there's no way the Porsche Orlando dealership will be able to break even on the Cybertruck they won at the Manheim auction. We've seen this with other high-profile car models that were flipped for profit or sold above the MSRP. It's hard, if not impossible, to time the market, and some people almost always get burned. Unless the market starves again in the coming months, the Porsche dealer will also have to cover its losses.
We're not sure what the actual market value of the Cybertruck is right now. However, as Tesla ramps up production and more people try to make money from flipping their Cybertruck, the prices will only go in one direction: down. This trend only changes if Tesla steps in and sues the flippers. In that case, the trucks already sold will turn into gold because they are no longer bound by the no-resale clause.
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