If current trends continue, people who have made big bucks buying and flipping houses might have to find a new side hustle thanks to rising interest rates and cool down in the housing market.
But there is a new opportunity for those that love the action of buying and selling; flipping Teslas and other electric vehicles.
It’s becoming a thing, as demand has increased significantly for EVs as gas prices hit record highs. Yahoo reported that people are willing to pay exorbitant sums, tens of thousands of dollars more than the retail price, and people are lining up to sell to them.
Dennis Wang failed on his first attempt at flipping a Tesla but regrouped and figured things out in his second attempt, making a $4,000 profit. He bought and flipped another Tesla and made $7,000 after that.
Flippers are trying to take advantage of the perfect story of factors that plague electric vehicle manufacturers, including the semiconductor shortage, supply chain issues, and a scarcity of lithium batteries.
Yahoo points out a person trying to sell a nearly new 2022 Hummer EV1 for $220K. The vehicle has a retail price of $105,000.
Larry Harris is a professor at USC’s Marshall School of Business and told Yahoo this.
“When supply and demand are not in alignment, you get these opportunities where clever people can take advantage. We’ve seen this in all kinds of markets. When prices change significantly for scarce goods, some buyers realize that the item has a greater value to others than it does to them, and they will sell to the people willing to pay more than they would and profit from it.”
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