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Tesla Cybertruck Resale Restrictions a Unique Clause in Purchase Terms

Tesla’s upcoming Cybertruck comes with a distinctive restriction on resale, as outlined in the “For Cybertruck Only” section of Tesla’s Motor Vehicle Order Terms. This provision states that buyers agree not to sell or attempt to sell the Cybertruck within the first year following its delivery date.

Here are key points from the resale restriction clause:

  1. Limited Quantity Release: The restriction is tied to the limited initial release of the Cybertruck. Buyers acknowledge this limitation and commit not to sell the vehicle within the specified timeframe.
  2. Exception for Unforeseen Reasons: In the event a buyer needs to sell the Cybertruck within the first year for unforeseen reasons, Tesla allows for exceptions. The buyer must notify Tesla in writing, giving the company the opportunity to purchase the vehicle at its discretion. The purchase price is determined based on the Final Price Sheet, with deductions for mileage, wear and tear, and repair costs.
  3. Penalties for Breach: If a buyer breaches this provision or if Tesla reasonably believes a breach is imminent, the company reserves the right to seek injunctive relief to prevent the transfer of title. Furthermore, Tesla may demand liquidated damages of $50,000 or the value received for the sale, whichever is greater.
  4. Refusal of Future Vehicle Sales: As an additional deterrent, Tesla has the authority to refuse to sell any future vehicles to a buyer who violates the resale restriction.

While such restrictions are uncommon in the automotive industry, Tesla’s unique approach aligns with its distinctive brand and products. The company’s emphasis on controlling the resale of its vehicles, particularly during the initial release period, adds an additional layer of exclusivity to the ownership experience.

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It’s worth noting that the demand for the Cybertruck remains high, with over 1 million customers having made deposits. However, Tesla’s current production capacity is around 125,000 units per year, with plans to reach 250,000 units annually by 2025. This scarcity, combined with resale restrictions, contributes to the Cybertruck’s unique market position.

As the automotive industry evolves, Tesla continues to innovate not only in vehicle design and technology but also in shaping the ownership and resale landscape for its distinctive products.

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