Tesla Will Sue for $50,000 If you Resell Your New Cybertruck During First Year of Ownership

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Filed under Automotive, EV News, News, Tesla

Tesla has unveiled the terms and conditions for the highly anticipated Cybertruck, scheduled for release on November 30. One notable stipulation prohibits owners from reselling their electric pickup trucks within the first year of ownership. This restriction was outlined in a section titled “For Cybertruck Only” in Tesla’s Motor Vehicle Order Agreement.

According to the agreement, owners explicitly agree not to sell or attempt to sell their Cybertruck within the initial year following the delivery date. Tesla has taken a firm stance on this matter, stating that they reserve the right to pursue injunctive relief to prevent the transfer of the vehicle’s title. Additionally, the company has the authority to demand liquidated damages from the owner, amounting to $50,000 or the value received as consideration for the sale or transfer, whichever is greater. Moreover, Tesla retains the option to refuse future vehicle sales to individuals who violate this resale restriction.

The Agreement reads:

For Cybertruck Only: You understand and acknowledge that the Cybertruck will first be released in limited quantity. You agree that you will not sell or otherwise attempt to sell the Vehicle within the first year following your Vehicle’s delivery date. Notwithstanding the foregoing, if you must sell the Vehicle within the first year following its delivery date for any unforeseen reason, and Tesla agrees that your reason warrants an exception to its no reseller policy, you agree to notify Tesla in writing and give Tesla reasonable time to purchase the Vehicle from you at its sole discretion and at the purchase price listed on your Final Price Sheet less $0.25/mile driven, reasonable wear and tear, and the cost to repair the Vehicle to Tesla’s Used Vehicle Cosmetic and Mechanical Standards.
If Tesla declines to purchase your Vehicle, you may then resell your Vehicle to a third party only after receiving written consent from Tesla. You agree that in the event you breach this provision, or Tesla has reasonable belief that you are about to breach this provision, Tesla may seek injunctive relief to prevent the transfer of title of the Vehicle or demand liquidated damages from you in the amount of $50,000 or the value received as consideration for the sale or transfer, whichever is greater. Tesla may also refuse to sell you any future vehicles.

The move to limit resale during the first year is a unique approach by Tesla and reflects the company’s strategy to control the market dynamics around its products. The introduction of this restriction aligns with Tesla’s broader vision for the Cybertruck, as CEO Elon Musk has ambitious plans to produce a quarter of a million units annually by 2025.

The Cybertruck, announced in 2019, is Tesla’s foray into the electric pickup-truck market and is expected to bring significant disruption. Initially touted to start at $39,900, the final cost may exceed this figure due to the utilization of expensive building materials. Elon Musk acknowledged in an earnings call earlier this year that it would take some time before the Cybertruck could contribute significantly to the company’s cash flow, estimating a period of 12 to 18 months.

The resale restriction adds an additional layer of complexity, especially considering Tesla’s subscription-based software model. Notably, features such as Full Self-Driving, priced at up to $199 per month, are non-transferable to new owners. As Tesla ventures into this new territory, the restrictions on resale and software subscriptions demonstrate the company’s unique approach to both the electric vehicle market and ownership experience.


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