Excited for the Tesla Cybertruck? You better be, because Elon Musk’s EV maker could demand $50K if you resell it sans permission in year one

Typically once you purchase a vehicle and it is yours, nothing can stop you from selling it to someone else. But that’s not the case for the Tesla Cybertruck.

A section entitled “For Cybertruck Only” in Tesla’s Motor Vehicle Order Terms begins:

“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.”

Of course, many enthusiastic buyers of the stainless steel electric Cybertruck, some of whom will soon receive their vehicle, won’t care about this provision, which Insider surfaced, at all. And if for whatever reason they do need to resell it, there’s a proper way to go about it, according to the terms:

“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.”

So it might take some time-consuming back-and-forth, but it would be possible to get permission to resell the vehicle. But if a Cybertruck owner overlooks or simply forgets about these terms, watch out: Penalties could ensue.

“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.”

If that weren’t enough to discourage someone from selling in the first year sans permission, there’s another threat to consider: “Tesla may also refuse to sell you any future vehicles.”

Tesla has no shortage of customers interested in the unusual pickup. CEO Elon Musk said last month that over 1 million customers have made deposits for the Cybertruck. The company’s capacity to make it, by contrast, now stands at only about 125,000 per year. It hopes to reach 250,000 by 2025.

Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.

Source link

About The Author

Scroll to Top