Tesla is imposing some bizarre restrictions on customers who buy the Cybertruck. For starters, they will not be able to resale their EV for any reason whatsoever.
As the eagerly awaited Tesla Cybertruck delivery event looms just over two weeks away, potential buyers are met with an unusual condition in the Motor Vehicle Order Agreement.
Despite Tesla’s withholding of critical details, including the truck’s price, the company is making a bold statement by instituting stringent penalties for resale attempts within the first year of ownership.
Under a section exclusively designated “For Cybertruck Only,” Tesla instructs buyers not to sell or attempt to sell their Cybertruck within the initial year following the delivery date. Violating this condition may prompt Tesla to pursue injunctive relief, hindering the transfer of title, or demand liquidated damages of $50,000 or the value received for the sale, whichever is greater.
The document further stipulates that Tesla reserves the right to refuse future vehicle sales to the offending customer. However, the company also retains the option to repurchase the Cybertruck at a significant discount or authorize resale under specific conditions.
While Tesla’s motive remains speculative, some interpret this move as an effort to curb potential resale value surges, thereby stimulating direct sales of the Cybertruck. This strategic approach aligns with Tesla’s financial struggles in recent times, marked by a 17 per cent drop in stock value in the latter half of October, erasing approximately $145 billion in valuation.
The Cybertruck, conceived as Elon Musk’s flagship project, has posed challenges for Tesla due to its distinctive and polarizing stainless steel design, necessitating novel production processes. Musk acknowledged the hurdles during Tesla’s Q3 earnings call, admitting that reaching volume production and achieving cash flow positivity with the Cybertruck present substantial challenges.
The imposition of resale restrictions underscores Tesla’s imperative to safeguard revenue. In the event of successful resale at a higher value, Tesla could potentially miss out on crucial profits, prompting Musk to adopt a confrontational stance toward potential customers to mitigate such risks.
As the Cybertruck’s launch approaches, the vehicular innovation may prove to be a financial boon or burden for Tesla, depending on its reception in the market and the company’s ability to overcome anticipated production challenges.