Did you drop a deposit on a Cybertruck a couple of years back thinking you could make a quick buck?
Well, Elon Musk has other plans. With the rollout of customer trucks apparently not far away, Tesla has added extra clauses to its terms of sale (which can be found in full here) – and they go beyond the fine print you’d find in most contracts.
Actually, it goes so far as to say Tesla will take you to court for selling your car.
The contract says the following (emphasis ours):
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.
With the first Cybertrucks poised to hit the streets of the USA by the end of November 2023, Tesla is trying to slam the brakes on any would-be flippers with a threat: sell your Cybertruck within a year, and you could be staring down the barrel of a US$50,000 ($78,000) lawsuit.
If you buy a Cybertruck, you’re expected to keep it for at least a year. Should you need to sell it within that time, Tesla demands the right to buy it back first – potentially at a depreciated value, considering miles driven and wear and tear.
And in case you’re thinking about sidestepping this agreement, think again. Tesla says it’s prepared to enforce this clause with legal action, and could even cut off future sales to those who defy the mandate.
The car world can be wild sometimes. Like when a crashed GMC Hummer EV still sold for double the retail price late last year. Talk about demand, someone really wanted to be part of the Hummer club, dents and all.
It’s worth noting these types of restrictions aren’t isolated in the automotive industry. Both Ferrari and Ford have implemented similar policies to curb flipping and maintain brand integrity.
The legal scuffle between Ford and wrestler John Cena over the premature sale of a Ford GT underscores the gravity with which such agreements are enforced.
Ferrari in particular is renowned for blacklisting buyers who fail to adhere to its stringent sales agreements.
Considering claims Tesla plans to pump out 125,000 examples of the Cybertruck per year, the clause has raised some eyebrows. Logic would suggest though this limitation is most likely going to be short-lived, focusing on the first wave of deliveries (likely going to VIPs, influencers and employees).
So what’s the moral of the story? If you’re one of the lucky few to get a Cybertruck this year, you may want to rethink that get-rich-quick scenario.
At any rate, it will be interesting to see how this pans out over the coming months.