Tesla is preparing for the most highly anticipated vehicle launch in its history, but for those early Cybertruck reservation holders that there were hoping to make a quick buck, they may want to read their vehicle purchase agreement closely as the automaker has added a new clause to prevent flipping.
Tesla first unveiled the Cybertruck in November 2019, with the original plan targeting the first deliveries in 2021. A global pandemic and supply chain issues, along with ramping the Model 3 and the Model Y caused several delays, during which time demand for the Cybertruck only increased, with unofficial estimates putting the number of reservations at over 1.5 million.
The unprecedented level of demand had some early reservation holders seeing dollar signs with the hope that they would be able to quickly flip their Cybertruck for a tidy profit. However according to a recent update to the Terms & Conditions of the Motor Vehicle Order Agreement (MVPA), they may be out of luck.
There is now a new “For Cybertruck Only” clause which states customers will not be allowed to sell their Cybertruck within the first year of ownership. If they want to they will first have to get written permission from Tesla, but the automaker reserves the right to buy the Cybertruck and the listed purchase price minus $0.25/mile for wear and tear, and repair costs.
If Tesla declines, only then can you sell to a third party. Breaching this clause will have repercussions, including Tesla suing you and possibly not allowing you to purchase any future vehicles.
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. Tesla may also refuse to sell you any future vehicles.
This isn’t the first time an automaker has implemented such a clause. General Motors (GM) did it recently for the Hummer EV, and companies such as Ferrari and Lamborghini are known to maintain a list of customers they will only sell their exclusive cars to, with the agreement they won’t resell them for a certain period of time.
While no one has signed this new MVPA for the Cybertruck yet, there will be some who do at the end of this month. Tesla is finally kicking off deliveries with a huge party at Giga Texas on November 30.
You can read the full MVPA on Tesla’s website here, or find it below. Not that it’s surprising, but no Cybertruck clause has been added to the Canadian purchase agreement. This just means Tesla has no immediate plans to sell the Cybertruck in Canada, whereas deliveries in the US start in 2.5 weeks. You can find the Canadian agreement here.
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