Electric vehicle giant Tesla has secretly removed the entire anti-flipping clause from the US Cybertruck Motor Vehicle Order Agreement on Tuesday, as noticed by InsideEVs.
For context, it is an order agreement interested buyers spotted early this week that restricts Cybertruck buyers from reselling the unit for up to one year after the delivery date.
What does the anti-flipping clause say?
EV-a2z recently reported that the anti-flipping clause occurred in Tesla’s Motor Vehicle Order Agreement Terms & Conditions for some Model 3 and Y recent purchases.
According to the now-deleted clause, future Cybertruck owners cannot resell the electric pickup for up to 12 months after receiving delivery unless Tesla approves.
Future owners must provide a reasonable explanation about their intentions in selling the Cybertruck in a written request. Tesla may decide to buy back the unit, but it will charge $0.25 for every mile driven, reasonable wear/tear, and repair costs.
They may also be allowed to sell the Cybertruck to other potential buyers if the Musk-led company refuses to buy back the model. Notably, they may face legal action or a $50,000 penalty if they violate the order agreement.
Here is the original excerpt (now deleted):
| “For 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.” |
Changes
As mentioned, Tesla has quietly removed the whole clause, threatening legal action against potential owners planning to flip the Cybertruck to gain more money from other interested buyers.
However, the changes did not indicate if Tesla still intends to pursue this no-resale policy.
Some reports suggest that Tesla may have just removed the clause in the meantime as it waits for the Cybertruck’s official launch later this month before releasing it again. It may also be just Tesla’s immediate response to the mixed reaction of the market regarding the intriguing clause.
Purpose
The primary purpose of the anti-flipping clause is to prevent scalpers from purchasing all the available units of the Cybertruck upon initial launch to resell them for higher value.
This would be a huge problem for Tesla, considering that the Cybertruck will only have limited production units.
That said, it is highly possible that Tesla will release a similar anti-scalping language clause soon after Cybertruck’s delivery event and the final pricing is disclosed.
Tesla is set to officially launch the Cybertruck on November 30, potentially alongside the upgraded FSD v12.
