Tesla legal questions: Can you sell your Model 3 reservation? (Video)

So you have your Tesla Model 3 reservation, but realize you no longer want it, is there a way to sell your Model 3 reservation to another person?

The short answer is “not really,” but our friend Ben Sullins at Teslanomics dives into the legal loopholes of the Model 3 agreement with YouTuber and attorney, Franklin Graves.

Graves points out that under section 6 of the reservation agreement, it clearly states “This agreement is not transferrable or assignable to another party without the prior written approval of a Tesla authorized representative.”

So the slightly longer answer is, “yes, with Tesla’s permission,” but Sullins and Graves dig a little deeper, touching on the fact that Tesla may allow you to transfer rights to a relative or loved one, but not for a profit.

Sullins also advises against buying a Model 3 reservation because it could either be a scam or Tesla could retroactively cancel it if they find out.

In terms of selling the vehicle once you own it, that is an entirely different story.

Graves points out that there is nothing noticeable in the contract preventing you from selling the vehicle upon its delivery, and Tesla would receive consumer backlash for claiming it still had rights to a vehicle that was purchased by a consumer.

The final point Sullins touches on is making a profit through selling the car after you get the $7500 federal tax credit that comes with purchasing a Tesla. Sullins tries to dissuade viewers of the idea because the government could tax your sale of the car as income, making for a fruitless endeavor.

Sullins urges viewers to talk to a tax professional before going down that route.

The video itself is informative and definitely a good view if you are wondering what exactly your rights are. As Sullins and Graves reiterate throughout the video, use caution before trying to do any of these things, and it is always best to consult an attorney or professional when handling contractual loopholes.

Mike Dolzer: Interim East Coast Editor for Teslarati, contributor for NextMobility. Share tips at mdolzer@teslarati.com
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