Tesla Cracks Down on Cybertruck Resellers with $50,000 Lawsuit Threat

Tesla Will Sue Cybertruck Resellers With $50,000 Lawsuit!

Tesla is set to deliver its highly anticipated Cybertruck in just over two weeks, following its initial unveiling four years ago. The company has not provided details about the pickup truck, including its price, but it is imposing strict penalties for individuals attempting to sell their own Cybertruck within the first year of owning it.

Tesla Cracks Down on Cybertruck Resellers with $50,000 Lawsuit Threat
In a section titled “For Cybertruck Only” in its Motor Vehicle Order Agreement customers have to sign, Tesla is instructing owners to “not sell or otherwise attempt to sell the Vehicle within the first year following your Vehicle’s delivery date.” If someone were to violate this rule, the company has the right to take legal action to stop the transfer of ownership of the vehicle or demand compensation of $50,000 or the value of the sale, whichever is higher.

The document states that Tesla has the option to not sell future vehicles to a customer. However, they can also choose to buy back the vehicle at a reduced price or allow the customer to resell it under specific conditions.

Tesla may be trying to increase sales of its truck by preventing a potential increase in the resale value of the vehicles. Simultaneously, the act of warning customers about potential legal actions for selling their belongings seems strange and portrays the electric vehicle manufacturer as quite desperate.

It is crucial for Tesla to maintain its revenue as it has struggled to keep investors happy this year, with its stock dropping over 17 percent in just the latter half of October, erasing around $145 billion in valuation.

The Cybertruck, which is Elon Musk’s personal project, has become a significant problem for the company. Its distinct stainless steel design has required the company to develop new manufacturing methods, and if the truck fails, it could have serious consequences.

To put it differently, the production of the Cybertruck will still be expensive for the company even after it is available for sale and so the company will lose out on profits if customers buy and resell their vehicles at a higher price, so Musk is willing to take action to prevent this.

Reference- The Verge, Inside EVs, Business Insider, Gizmodo, Futurism, Bloomberg