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Tesla Introduces Controversial Resale Clause for Cybertruck Buyers: Potential $50,000 Lawsuit Threat

by Harikrishnan A
December 13, 2023
in Business, Electric Vehicles, Markets, News, Startups, Tech, World
Reading Time: 2 mins read
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Tesla, the electric carmaker, has reintroduced a clause in its contract that could lead to a $50,000 or more lawsuit against buyers who bought the Tesla Cybertruck just to resell it within one year of ownership. This clause was initially present in the public version of Tesla’s Motor Vehicle Order Agreement Terms & Conditions before it was removed. However, customers ordering the limited launch edition “Foundation Series” Cybertruck report that the clause has made an official return.

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Clause Details and Consequences

The reinstated clause stipulates that Cybertruck buyers must first offer the vehicle back to Tesla at a reduced price before attempting any resale within the initial year of delivery. If Tesla declines to repurchase the Cybertruck, then the owner can proceed with the sale. But they may only proceed to do so upon receiving “written consent” from Tesla. The clause explicitly warns in the event of a breach of this contract or if Tesla has a reasonable belief that an owner is about to breach this provision, Tesla has the right to 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 also reserves the right to refuse the sale of any future vehicles to the breaching buyer.

Evidence and Buyer Experiences

A Cybertruck buyer, who recently submitted a $122,135 order, shared a copy of the order agreement received from Tesla with ArsTechnica. This officially confirmed the reappearance of the resale-lawsuit clause. The clause that was deleted from the public agreement only contained a rule that you couldn’t quickly resell it. The first clause also didn’t contain any lawsuit threats. The buyer also disclosed that they had paid a $250 order fee as well as a $100 reservation fee. The agreement states that Tesla is not obliged to refund such fees if a buyer cancels a purchase after submitting a completed order.

Forum Discussions and Uncertainties

Confirmation of the clause’s return first surfaced on a Cybertruck buyers forum, where individuals who reserved the Foundation Series edition, which was a limited available truck, received invitations to order on Friday. It is still uncertain at this point whether the clause exclusively applies to the Foundation Series or extends to all Cybertruck variants. Speculation in an Electrek article suggests that it might be specific to the Foundation Series or could persist until the Cybertruck is no longer in “limited quantity.”

Variations in Tesla’s Official Documents

When comparing the two versions of Tesla’s Cybertruck preorder agreement, certain distinctions are immediately revealed. The public version features an anti-resale clause, permitting Tesla to unilaterally cancel any order believed to be made with an intention to resell or in bad faith. However, it lacks the explicit lawsuit threat included in the agreements sent directly to buyers.

Customer Dissatisfaction and Limited Edition Details

Expressing dissatisfaction in the Cybertruck forum, a buyer highlighted the disappointment of receiving the version with the lawsuit warning even after paying the $250 order fee. Meanwhile, the Foundation Series, priced at $120,000 and limited to 1,000 cars, raises questions about whether this resale clause will extend to other Cybertruck variants. Tesla’s official website indicates that Cybertruck versions priced at $68,890 and $96,390 will be available in 2024, with a more affordable $49,890 version expected in 2025.

Tags: ElonMuskTesla
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Harikrishnan A

Aspiring writer. Enjoys gaming, fried chicken and iced tea, preferably all together.

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