Elon Musk’s Tesla has made a significant move in controlling the resale market of its vehicles, threatening to sue CyberTruck owners who try to sell the vehicle within a year of purchase.
Business Insider reports that Tesla’s Cybertruck, set to be delivered to those who pre-ordered it on November 30, comes with a unique condition: owners are prohibited from reselling the vehicle within the first year of purchase. This stipulation was detailed in a section titled “For Cybertruck Only” in Tesla’s Motor Vehicle Order Agreement.
So let me get this straight. You have to order a vehicle sight unseen, for a unknown price with unknown specs and won’t be able to sell it for a year when it turns into a lemon?
— Prestige Worldwide 🇨🇦 (@DobackHuffInc) November 12, 2023
Elon Musk hopes to produce a quarter of a million Cybertrucks annually by 2025. This new rule is an attempt to regulate the market and ensure that the vehicles reach genuine customers rather than being flipped for profit in a secondary market.
Tesla’s policy states that any attempt to resell the Cybertruck within the first year of delivery will lead to legal consequences. The company may seek injunctive relief to prevent the transfer of the vehicle’s title or demand liquidated damages from the seller. The amount could be as high as $50,000 or the value received from the sale, whichever is greater. Additionally, Tesla has warned that it may refuse to sell any future vehicles to individuals who violate this agreement.
However, Tesla seems to have provided a safety net for genuine cases where an owner might need to sell the vehicle within the first year. In such scenarios, Tesla may agree to buy back the Cybertruck at the original price, minus certain deductions. These include $0.25 per mile driven, reasonable wear and tear, and the cost to repair the vehicle to Tesla’s standards.
If Tesla chooses not to purchase the vehicle, the company may grant permission for the owner to sell it to someone else. This clause indicates Tesla’s understanding that certain unforeseen circumstances might force an owner to sell the vehicle prematurely.