Tesla’s Unique Stipulation: Potential $50K Lawsuit for Cybertruck Resellers Flipping Too Soon

In anticipation of the first Cybertruck deliveries, Tesla has updated its Motor Vehicle Order Agreement to include a “Cybertruck Only” clause. This clause prohibits buyers from selling their new vehicle within the first year without explicit permission from Tesla. If buyers breach this resale provision, Tesla may seek injunctive relief to prevent the transfer of title of the vehicle, demand liquidated damages of $50,000 or the value received for the sale or transfer, and bar offending resellers from purchasing vehicles from Tesla in the future. However, Tesla may grant exceptions to some buyers wishing to sell their Cybertruck within the first year if they obtain written consent. If approved, buyers can either sell the vehicle back to Tesla at a reduced price or resell it to a third-party buyer. With the Cybertruck initially being released to a small number of select customers and not entering mass production until 2024, Tesla is looking to prevent resellers from taking advantage of the vehicle’s rarity.