After years of anticipation, Tesla's Cybertruck is finally scheduled for an extremely limited launch on November 30th. Full production of the somewhat futuristic vehicle will likely begin late next year. And because supply will be limited at first, Tesla is not interested in users reselling the vehicle.
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To that end, if you're planning to buy Tesla's Cybertruck, pay close attention to the fine print. A deleted update to the company's terms of service conveyed that owners are prohibited from reselling the truck without Tesla's permission. What's more, the update indicated that Cybertruck owners who fail to follow Tesla's resale guidelines may be subject to a US$ 50,000 lawsuit.
The provision reads in part:
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You understand and acknowledge that the Cybertruck will initially be released in limited quantities. You agree that you will not sell or attempt to sell the Vehicle during the first year after the delivery date of your Vehicle. Notwithstanding the foregoing, if you must sell the Vehicle within the first year after the delivery date for any unforeseen reason, and Tesla agrees that your reason warrants an exception to its non-dealer policy, you agree to notify Tesla in writing and give Tesla a reasonable time to purchase the Vehicle from you in its sole discretion and at the purchase price listed on your Final Price Sheet less US$ 0.25/mile driven, reasonable wear and tear, and the cost to repair the Vehicle in accordance with the Tesla Used Vehicle Cosmetic and Mechanical Standards.
If Tesla refuses to purchase your Vehicle, you may only resell your Vehicle to a third party after receiving Tesla's written consent. You agree that if you violate this provision, or Tesla has a reasonable belief that you are about to violate this provision, Tesla may seek injunctive relief to prevent the transfer of ownership of the Vehicle or seek damages from you. worth US$ 50,000. or the amount received as consideration for the sale or transfer, whichever is greater. Tesla may also refuse to sell you any future vehicles.
The section referencing the potential lawsuit has been removed, but the section giving Tesla the first right of refusal remains. Simply put, Cybertruck dealers will need Tesla's permission to sell the truck within the first year of ownership.
Why is Tesla playing hardball?
There are a few theories about why Tesla is playing hardball when it comes to resales. One theory put forward is that the company wants to prevent rivals from getting their hands on it and reverse engineering certain aspects. This seems unlikely given that competitive research in the automotive industry is the norm.
A more plausible theory is that because the Cybertruck will be in limited supply at launch, Tesla simply wants to ensure that the first buyers are authentic buyers, as opposed to users who might potentially want to resell it for a profit.
In fact, strict provisions regarding car resale are rare, but not unheard of. Other automakers have implemented similar provisions in recent years. You may remember that Ford sued John Cena a few years ago for selling his 2017 GT Supercar.
At the time, Ford said:
After being selected from thousands of applicants for the opportunity to purchase the Ford GT, Mr. Cena rolled his vehicle shortly after receiving it, despite his agreement with Ford to maintain ownership of the vehicle for 24 months.
That case was finally resolved.
Tesla's somewhat unusual contract terms aside, the Cybertruck's specs are intriguing. It has up to 3,500 pounds of payload capacity and up to 500 miles of range. In terms of speed, it can go from 0 to 60 MPH in just 2.9 seconds. It can also tow an impressive 14,000 pounds, although leaked specs indicate it could weigh 11,000 pounds.
Aesthetically, Tesla's Cybertruck is extremely unique and looks like nothing else on the market. It remains to be seen whether this helps or hurts initial sales.
Tesla's Cybertruck delivery event is scheduled to take place at the company's Gigafactory in Austin, Texas on November 30.
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After years of anticipation, the Tesla Cybertruck is finally scheduled for an extremely limited release on November 30th. Full production of the somewhat futuristic vehicle likely won't begin until late next year. And with limited supply in the beginning, Tesla isn't keen on users reselling the vehicle.
For this purpose, if you're planning on buying the Tesla Cybertruck, pay close attention to the fine print. An update removed from the company's terms of service conveyed that owners are prohibited from reselling the truck without Tesla's permission. Furthermore, the update indicated that Cybertruck owners who do not adhere to Tesla's resale guidelines could be subject to a $50,000 lawsuit.
The provision reads in part:
You understand and acknowledge that the Cybertruck will initially be released in limited quantity. You agree not to sell or attempt to sell the Vehicle during the first year after the delivery date of your Vehicle. Notwithstanding the above, if you must sell the Vehicle within the first year after the delivery date for any unforeseen reason, and Tesla agrees that your reason justifies an exception to its non-resale policy, you agree to notify Tesla in writing and give Tesla a reasonable period to purchase the Vehicle from you at its sole discretion and for 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 in accordance with Tesla's Used Vehicle Cosmetic and MechanicalStandards.
If Tesla refuses to purchase your Vehicle, you may only resell your Vehicle to third parties after receiving written consent from Tesla. You agree that, if you violate this provision, or Tesla has a reasonable belief that you are about to violate this provision, Tesla may seek injunctive relief to prevent the transfer of ownership of the Vehicle or require you to indemnify them for damages in the amount of $50,000, or the consideration received from the sale or transfer, whichever is greater. Tesla may also refuse to sell you any future vehicles.
The section that references the potential lawsuit has been removed, but the section granting Tesla the first right refusal remains. In simpler terms, Cybertruck resellers will need Tesla's permission to sell the truck within the first year of ownership.
Why Is Tesla Playing Hardball?
There are some theories as to why Tesla is playing hardball regarding resales. One theory presented is that the company wants to prevent rivals from getting their hands on it and reverse engineering certain aspects. This seems unlikely, given that competitive research in the automotive industry is the norm.
A more plausible theory is that, since the Cybertruck will have limited availability at launch, Tesla simply wants to ensure that early buyers are authentic buyers, as opposed to users who might potentially want to resell it at a profit.
By the way, stringent provisions regarding car resales are rare but not unprecedented. Other automakers have implemented similar provisions in recent years. You may recall that Ford sued John Cena a few years ago for selling his 2017 GT Supercar.
At the time, Ford stated:
After being selected from thousands of applicants for the opportunity to purchase the Ford GT, Mr. Cena flipped his vehicle shortly after taking delivery, despite his agreement with Ford to retain ownership of the vehicle for 24 months.
That case was eventually settled.
Setting aside Tesla's somewhat unusual contract terms, the specifications of the Cybertruck are intriguing. It has up to 3,500 pounds of payload capacity and up to 500 miles of range. In terms of speed, it can go from 0 to 60 MPH in just 2.9 seconds. It can also tow an impressive 14,000 pounds, although leaked specifications indicate it may be as heavy as 11,000 pounds.
Aesthetically, the Tesla Cybertruck is extremely unique and unlike anything else on the market. It remains to be seen whether this helps or hinders initial sales.
The Tesla Cybertruck delivery event is set to take place at the company's Gigafactory in Austin, Texas on November 30th.
