Tesla, Inc.’s TSLA Cybertruck launch event is fast approaching, and an update to the “Motor Vehicle Order Agreement” for the electric pickup truck has raised eyebrows.
What Happened: Tesla has a “No Resellers; Discontinuation; Cancellation” section targeted at Cybertruck customers that says “you will not sell or otherwise attempt to sell the Vehicle within the first year following your Vehicle's delivery date.”
If a user sells the Cybertruck for any unforeseen reason and Tesla agrees that they warrant an exception to its no reseller policy, the user has to notify the company in writing and give Tesla reasonable time to purchase the vehicle at the price listed on the final price sheet less $0.25/mile driven, reasonable wear and tear, and the cost to repair the vehicle to the company’s “Used Vehicle Cosmetic and Mechanical Standards,” Tesla says its in terms and conditions.
If Tesla does not purchase the vehicle, then the user can resell the vehicle to a third party only after receiving written consent from the company.
Tesla, however, warned that it could seek legal recourse if the user breaches this provision. “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,” the terms read.
The company also may refuse to sell the user any future Tesla EVs, it added.
See Also: Everything You Need To Know About Tesla Stock
Social Media Users React: The updated terms of the order agreement divided social media users. One user said they had questions as to whether a court could actually enforce the agreement.
A Tesla influencer who goes by the X handle @greggertruck said, “I *FULLY* support a lock for Cybertruck flips for the first year on the market.”
Another Tesla fan said, “IMO many Cybertrucks were preordered to be flipped for a profit. Since it can't be flipped for a year some will cancel the order and that will put the serious buyer into an earlier delivery position.”
Why It’s Important: Cybertruck is Tesla’s much-awaited EV and analysts expect the vehicle to give the company a big volume lift both through sales and through a “halo effect” on the rest of the vehicle lineups. Musk, however, dampened some of the enthusiasm by suggesting the ramp-up would be difficult.
Tesla ended Friday’s session 2.22% higher at $214.65, according to Benzinga Pro data.
Photo: Shutterstock
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