This Startup Is Giving Away Free Tesla Cars In Exchange For Referring Successful Amazon Businesses

A startup is giving away free Tesla Inc. TSLA cars as part of a referral program to acquire independent sellers on the Amazon.com Inc. AMZN marketplace.

What Happened: Acquco, an Amazon seller aggregator, said it is giving away a free Tesla Model Y to anyone who refers an Amazon third-party seller that is later acquired by the company. The Model Y retails for a starting price of about $50,000.

Acquco’s CEO Raunak Nirmal said in an interview to CNBC that his company, which focuses on third-party Fulfillment by Amazon (FBA) sellers, is willing to give away up to $10 million worth of Model Y cars.

“There are two options for rewards. You can either get a Tesla — you will have $49,990 to put towards a Tesla model of your choice. Alternatively, you can choose to take the cash directly,” the New York-based company said on its website.

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Why It Matters: Amazon Marketplace, an e-commerce platform owned by Amazon, allows third-party sellers to sell new or used products alongside the company’s regular offerings. The sellers can leverage Amazon’s logistics services, fulfillment centers and huge customer base to connect with buyers.

Acquco’s referral program highlights the intense competition in the emerging market for Amazon seller aggregators.

Amazon seller aggregators such as Acquco inject capital and leverage their expertise operating Amazon business to rapidly scale the FBA brands and increase profits. Acquco, led by a team that includes former Amazon executives, said it has raised $160 million from top venture capitalists to buy Amazon businesses.

Price Action: Amazon.com shares closed almost 1.4% lower in Thursday’s regular trading session at $3,631.20 and further declined almost 0.3% in the after-hours session to $3,622.00.

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Photo: Courtesy of Tesla