Tesla Attempts To Shorten Cybertruck Wait List; Will Prevent Resales for One Year
![Tesla is trying to prevent scalpers from reselling the Cybertruck](https://www.notateslaapp.com/images/news/2023/cybertruck-investor-day.jpg)
Tesla is taking steps to prevent owners from flipping their Cybertrucks for a profit. The company intends to help prevent the trucks from being resold at inflated prices and potentially speed up the delivery of Cybertrucks to actual customers.
Preventing Cybertruck Flipping
The Cybertruck is a hotly anticipated vehicle. Although the exact official data remains unknown, Elon Musk mentioned that more than 1 million people have pre-ordered it, but didn't reveal the exact number of units preordered. Giga Texas has already started production and the first deliveries are scheduled to take place at the November 30th delivery event. The truck is a complex product, and it will take time to ramp up production. Tesla eventually plans to land on 200,000 units per year, meaning that it could take five years for Tesla to make it through its preorder list. Tesla seems to be actively working to shorten wait times for its truck by encouraging those who preordered solely for reselling at a profit to cancel their preorders.
This practice is relatively common in the automotive world, especially when it comes to highly anticipated vehicles such as the Cybertruck.
Tesla's Order Agreement for the Cybertruck
Like several other automakers, Tesla has added an important clause to the Terms and Conditions of the Motor Vehicle Order Agreement, as noticed by @TeslaTruckClub. When purchasing a Cybertruck, the customer will have to agree to the terms and conditions described therein. In particular, the company prohibits the resale of the truck to third parties for a period of one year from the date of delivery.
If the customer has conditions that require the sale of the vehicle, they must notify the company. Tesla can buy the Cybertruck back "at its sole discretion and at 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 to Tesla's Used Vehicle Cosmetic and Mechanical Standards." If Tesla refuses to purchase the vehicle, the customer will be able to resell it to a third party only after receiving written consent from the company. If the terms are violated, Tesla may seek an injunction to prevent the transfer of ownership of the Cybertruck or seek damages of $50,000 from the customer. The full text of the terms and conditions can be found at the bottom of the article.
Why Is This a Positive Condition?
While some consumers may consider such terms to be a violation of their rights, in reality, they are intended to protect them. Since the Cybertruck already has a fan base and is the most anticipated vehicle in automotive history, some people may try to take advantage of early preorders. Many of them have pre-ordered multiple trucks with the sole purpose of reselling them at inflated prices once they receive them. However, this is only part of the problem.
If Tesla can get scalpers to cancel their preorders, then customers who ordered the truck for themselves could be in for a shorter wait time.
Below is the clause in Tesla's Order Agreement:
Cybertruck Only: You understand and acknowledge that the Cybertruck will first be released in limited quantity. You agree that you will not sell or otherwise attempt to sell the Vehicle within the first year following your Vehicle's delivery date. Notwithstanding the foregoing, if you must sell the Vehicle within the first year following its delivery date for any unforeseen reason, and Tesla agrees that your reason warrants an exception to its no reseller policy, you agree to notify Tesla in writing and give Tesla reasonable time to purchase the Vehicle from you at its sole discretion and at 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 to Tesla's Used Vehicle Cosmetic and Mechanical Standards. If Tesla declines to purchase your Vehicle, you may then resell your Vehicle to a third party only after receiving written consent from Tesla. 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.
How had I never seen this in the Motor Vehicle Order Agreement before? pic.twitter.com/wI5FP05qV0
— Mike - CyberOwners.com (@TeslaTruckClub) November 11, 2023