Tesla backtracks on controversial fines for Cybertruck resellers

After a backlash, Tesla has updated its terms and conditions for Cybertruck buyers. Those no longer include a specific “no-reselling” clause, removing the risk of getting a $50,000 fine if the vehicle is sold within the first year of purchase.

Tesla’s Motor Vehicle Order Agreement no longer includes the Cybertruck section, which previously stated buyers' obligations regarding reselling the vehicle.

Cybernews reported that Cybertruck buyers must agree that they will not sell or attempt to sell the vehicle within the first year. If not, Tesla could “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’s move has been widely criticized on social media. Many reviewers claimed, “You don’t own what you can’t sell,” raising questions on the legality of enforcing such a clause.

The terms and conditions still include a general “No Resellers” section, stating that Tesla and its affiliates sell cars directly to consumers. Any orders with a goal to resell or otherwise “made in bad faith” may be unilaterally canceled. Tesla would keep the order fee, order deposit, and transportation fee in that case.

The first Cybertruck delivery event will take place at Gigafactory Texas on November 30th, marking the start of shipments. Tesla has not yet revealed the Cybertruck’s pricing.

While not common, some car makers of rare and expensive vehicles use restrictive agreements to limit reselling cars such as Ferrari or Porsche, according to electrek.co. However, Cybertrucks will be mass-produced in the capacity of 125,000 per year at the Gigafactory Texas. Its price was touted to start from around $40,000 back in 2019.

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