Tesla Contract Prevents Reselling In First Year of Ownership for Cybertruck
In what appears to be good news for Cybertruck buyers, Tesla is creating a contract that will prevent reselling (likely for a higher price) in the first year of ownership. Due to the uniqueness of this product, Tesla is probably getting ready to prevent people from selling them for a profit at much higher prices.
If one breaks this contract, Tesla can sue for $50,000 or the profit made on the sale. One might not think that this clause can hold up in court, but John Cena, a famous wrestler, was sued by Ford and was forced to settle in the arrangement.
Here is the full text of the legal clause:
"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."
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A Smart Move By Tesla to Prevent Problems
This is a smart move by Tesla in order to prevent problems. In the John Cena lawsuit, John was forced to settle in regard to a Ford GT that he purchased. Ford is paying the proceeds of this to an unnamed charity.
What happened was in 2017 when John Cena took delivery of a brand new Ford GT supercar. He resold the car, which violated the sales agreement, saying that Ford's hand-picked customers could not resell the vehicles for at least two years.
Ford ended up having more demand for the GT supercar, and then they realized and doubled the lifespan to four total years of production. The base price of this car is $478,750.
I think for any unique car like the Ford GT or the Cybertruck, it's smart to put in a contract like this. Otherwise, you have price gouging that will likely take place as the new vehicle is sold and resold for more and more money, making the market an ugly place.
What do you think about this new clause for the Cybertruck - is Tesla smart to add this?
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Hi! My name is Jeremy Johnson, and I am a Tesla investor and supporter. I first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, I've become a Tesla bull, covering anything about Tesla I can find, while also dabbling in other electric vehicle companies like Aptera. I cover Tesla developments at Torque News. You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla news coverage. Image Credit, Tesla, Screenshot