Keeney

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Other car dealers and manufacturers should also be up in arms about such clauses since they would prevent people from being able to trade in their CT if they don't like it and buy some other vehicle.
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CyberGus

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Many companies have attempted to control the market for re-sale of their product. They have attempted to use copyright law or other contractual arrangements. The problem is that the laws of commerce favor the concept that if you bought it, you own it. If you legally possess it, its yours to do what you wish. If people cannot depend on a sale being final, then commerce quickly gets super-complicated.

If Tesla wants to reserve some interest in the truck after you buy it, then they are not selling it to you (fully). It will have to be treated accounting-wise more like a license agreement or maybe a lease. They will have to spread the recognition of the revenue over time. They won't get to recognize the revenue right away as they do with a straight sale.

They will also have to advertise appropriately, else get investigated for truth in advertising violations with the FTC. They cannot call it a "sale" when they are reserving an interest or control in your ownership of the vehicle.

Banks who finance vehicles are also going to weigh in on this issue. Its not good collateral to a loan if it cannot easily be liquidated for cash if they have to foreclose the loan.
I find your legal analysis flawed. Of course, I'm only an internet armchair lawyer 🤷‍♂️
 

Crissa

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Banks would love this language, as it means Tesla is on the hook to buy back the trucks.

Other manufacturers wouldn't have any leg to stand on, there's no 'right' to the trade-ins from other buyers.

-Crissa
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