Tesla has introduced an interesting “Cybertruck Only” clause, which prevents buyers from selling the vehicle within the first year without Tesla’s explicit consent. Notably, the clause carries a substantial financial penalty, amounting to $50,000 or the gained sale value, whichever is higher, for those who breach this restriction.
Here is what you can and can’t do with your upcoming Cybertruck…
Tesla’s $50K penalty for early Cybertruck sales
According to Engadget, the “Cybertruck Only” clause added to Tesla’s purchase agreement serves as a safeguarding measure specifically tailored for the Cybertruck model. This clause dictates that individuals who purchase the Cybertruck from Tesla are prohibited from selling the vehicle within the initial year of ownership without explicit consent from the company.
Here are the key aspects of the clause:
- Restriction on resale: Buyers of the Cybertruck are bound by a contractual obligation to retain ownership for at least one year from the purchase date. This restriction aims to prevent immediate resale attempts and deter individuals from purchasing the vehicle solely for profit through quick resale.
- Legal implications for breach: Should a buyer contravene the resale provision by attempting to sell the Cybertruck within the stipulated one-year period without Tesla’s explicit approval, the company reserves the right to take legal action. This action could entail seeking injunctive relief to prevent the transfer of the vehicle’s title. In addition, Tesla has the authority to demand significant financial penalties, amounting to $50,000 or the value obtained from the sale, whichever is higher.
- Exemptions and conditions for resale: Tesla acknowledges that certain circumstances might warrant an early resale, and they provide an avenue for exceptions. However, any prospective seller seeking to part ways with their Cybertruck within the first year must secure written consent from Tesla. If granted, the options available for resale are subject to specific conditions set by the company.
- Options for approved resale: For individuals who obtain written consent to sell their Cybertruck within the restricted period, Tesla offers two possible avenues. The first option involves the company repurchasing the vehicle at a reduced price, factoring in depreciation ($0.25 per mile driven), wear and tear, and necessary repair costs. The second option permits the owner to sell the Cybertruck to a third-party buyer upon securing approval from Tesla.
This clause primarily serves to preserve the exclusivity of the Cybertruck and dissuade opportunistic resellers from exploiting its limited availability. It underscores Tesla’s effort to ensure that the vehicle remains in the hands of genuine enthusiasts rather than being rapidly circulated in secondary markets for financial gain. Tesla’s proactive measures seek to maintain control over the initial distribution and use of the Cybertruck, aligning with the company’s commitment to both its products’ integrity and the interests of authentic buyers.
