Tesla has updated its Motor Vehicle Order Agreements for the U.S. market, revealing strict terms about reselling the Cybertruck. Buyers must refrain from selling the vehicle within the first year, or pay a hefty $50,000 penalty.
- Tesla updates terms for Motor Vehicle Order Agreements in the U.S., with a focus on the Cybertruck resale.
- Buyers are prohibited from selling their Cybertruck within the first year of ownership or face a $50,000 penalty.
- The automotive industry commonly employs such agreements for low-volume vehicles with high early demand.
Tesla, the pioneering electric vehicle manufacturer, has recently made significant updates to its Motor Vehicle Order Agreements, raising eyebrows in the automotive world. These revisions specifically target the resale of their much-anticipated Cybertruck within the U.S. market, setting a stringent condition that buyers must adhere to.
In a bold move, Tesla has dictated that purchasers of the Cybertruck cannot sell their vehicle within the first year following its delivery. While such restrictions might seem extreme, there’s a catch—a hefty financial one. Should a Cybertruck owner decide to circumvent this clause and proceed with the sale within the first year, they will incur a substantial $50,000 penalty.
This revelation has garnered attention as the release date for the Tesla Cybertruck, slated for November 30, inches closer. Enthusiasts who were hoping to make a quick profit by reselling their Cybertrucks now face a significant financial deterrent, making it less attractive for speculators looking to capitalize on the high demand and limited supply expected for this innovative electric pickup.
Tesla’s decision to enforce these resale terms underscores the company’s commitment to maintaining control over its products in the resale market and preventing scalping, which has become a concern in the automotive industry with limited-production, high-demand vehicles. This practice is not entirely new to the automotive world. Other manufacturers, like Ford with its GT supercar, have implemented similar rules in the past, often resulting in high-profile incidents when buyers attempted to sell their cars before the agreed-upon timeframe.
The information provided on the official website is as follows:
“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.”
Looking forward, Tesla has ambitious plans for the Cybertruck. By 2024 or 2025, they anticipate production volumes exceeding 125,000 units annually. However, the precise timeline for reaching this milestone remains uncertain. Much of it hinges on the company’s ability to fully leverage its manufacturing capacity at the Giga Texas plant, which will play a crucial role in meeting the growing demand for this unique electric pickup.
In conclusion, Tesla’s updated terms and conditions for Motor Vehicle Order Agreements in the U.S., particularly concerning the resale of the Cybertruck, indicate a proactive approach by the company to maintain control and discourage early resale speculation. This move aligns with industry practices for limited-volume, high-demand vehicles and serves as a reminder that buying a Cybertruck comes with a commitment that extends beyond ownership’s first year.