DON'T SELL YOUR TESLA CYBERTRUCK... or face a $72,500 AUD fine.
November 13, 2023
Tesla's innovative approach to managing the resale of its highly anticipated Cybertruck includes a unique clause in its Motor Vehicle Order Terms, emphasizing the company's strategic control over the vehicle's early market presence. This clause, specifically titled "For Cybertruck Only," underscores the limited initial availability of the Cybertruck and binds the initial owners to a no-resale agreement for the first year following the vehicle’s delivery.
The clause outlines that if an owner needs to sell the Cybertruck within this one-year period due to unforeseen circumstances, they must first notify Tesla in writing. Tesla then has the option to repurchase the vehicle, considering factors like mileage, wear and tear, and repair costs to meet Tesla's Used Vehicle Cosmetic and Mechanical Standards. If Tesla opts not to repurchase the vehicle, the owner can then seek approval to sell to a third party.
This process, although potentially time-consuming, offers a structured path for those needing to resell their Cybertruck due to exceptional circumstances. However, failing to comply with these terms could lead to significant penalties. Tesla may seek legal action to prevent the transfer of the vehicle's title or demand liquidated damages amounting to AUD 72,500 or more, depending on the sale's value. Additionally, Tesla reserves the right to refuse future vehicle sales to those who breach this agreement.
The context of this policy becomes more pertinent considering the high demand for the Cybertruck. Tesla CEO Elon Musk reported over one million customer deposits for the vehicle, juxtaposed against the company's current production capacity of about 125,000 units per year, with hopes to increase this to 250,000 by 2025. This disparity between supply and demand highlights the rationale behind Tesla's restrictive resale policy, aiming to manage the initial rollout and maintain market stability for the Cybertruck.
Tesla's approach reflects a broader industry trend where manufacturers exert greater control over the early resale market of their vehicles, especially those released in limited quantities or with significant public interest. This strategy, while potentially limiting for early buyers, serves to stabilize the initial market presence of new, high-demand models like the Cybertruck.
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Matt Brand, the esteemed car critic from Car Sauce, offers unparalleled expertise on all things automotive. From new car releases to pre-owned options, he provides in-depth analysis and honest evaluations to guide readers through the car-buying process. Join us as he delves into the exciting world of motoring.