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Tesla Says Cybertruck Resellers Could Face $50K Penalties

Tesla Says Cybertruck Resellers Could Face $50K Penalties

As Tesla prepares for the Nov. 30 release of its Cybertruck, the company has added yet another clause to its purchase agreement making it difficult for resellers to flip the vehicle too soon. 

According to Engadget, the new “Cybertruck Only” clause in the purchase agreements states buyers are not able to sell their vehicles within the first year. That is unless they have explicit permission from Tesla. If they don’t get the permission, the buyers attempting to resell the vehicle could be sued for $50,000. 

In the contract, Tesla may seek “injunctive relief” to prevent the transfer of title of the vehicle if the buyers breach the contract’s resale provision. The demand liquidated damages from the reseller for $50,000 or the value received as consideration from the sale or transformer. This depends on whichever is greater. 

Tesla also states offending resellers could be barred from purchasing any of its vehicles in the future.

Although it sounds as though the contract is completely non-negotiable, Tesla stated it may grant some exceptions. However, those planning to resell their Cybertrucks within the first year must have written consent. If the company agrees to the resell, it will either purchase the vehicle back at a reduced price or deduct $0.25 per mile driven. Other issues, including wear and tear and necessary repairs, may also reduce the resell price. The company may end up allowing a third-party buyer to purchase the vehicle as well.

Tesla is currently rolling out a small amount of Cybertrucks in 2023. The vehicle reportedly won’t be entering mass production until 2024. 

Tesla’s Elon Musk Says the Company Dug Its Own Grave With Cybertruck 

Last month, The Verge reported Tesla CEO Elon Musk stated during the company’s Q3 earnings call that he wanted to “temper expectations” when it came to the Cybertruck. 

“We dug our own grave with the Cybertruck,” Musk declared. He then explained that Cybertruck is a “special product” to come along once in a long while. “And special products that come along once in a long while are just incredibly difficult to bring to market to reach volume, to be prosperous.”

Musk also revealed that Tesla is planning to produce a quarter of a million Cybertrucks per year. However, that won’t happen until after the next year. More than one million people have reserved the truck. Musk previously declared Cybertruck as Tesla’s best product ever. “It is an extremely difficult product to build. We are in uncharted territory because it is not like anything else.”