Cybertruck NO RESALE Restriction (1 Year) Spotted in Purchase Agreement Language

[firsttruck]

And neither does the no resale policy, if Tesla under prices the vehicle at launch, which is the only reason they would need a no resale clause.

If Tesla wants all the profit for themselves (which is perfectly reasonable for them to desire and go after, in any way that doesn't screw the customer or monopolize the market), they need to price it at market price at launch. Due to people with more dollars than sense, that price is crazy high at the start but asymptotes down to reality rapidly as well. There's another name for this style of sale, it's called a Dutch auction, and it's a much more sane way to handle giving Tesla it's due share of the profit, instead of "scalpers".

But people will complain about rapid downwards price movements and resale value and a bunch of other things that don't matter.

....

"rapid downwards price movements and resale value"

Great unhappiness will not be from just customers.

Banks and other companies that loaned money to people to buy Cybertrucks will be very unhappy the collateral value dropped so much in such a short time.

Banks and other companies that loaned money to people to buy Cybertrucks will mean loans on Cybertruck will be considered a higher risk and will require larger down payments and higher interest rates on loans for Cybertrucks.

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[hridge2020]

Someone shared this on the Cybertruck Reddit page claiming it was found in a recent Model Y purchase agreement. No insight into validity but I’ve heard of other manufacturers doing similar before so not out of the realm of possibilities. Thoughts?

Personally it would be good news to me because I don’t intend to resell mine after purchase. Maybe this will help slim down the line a bit.

Hmmm something is not matching.
Go to https://www.tesla.com/cybertruck/design#payment, click on the Cybertruck Pre-Order Agreement.

The agreement post to the forum shows a 2022 year date.
The one that comes up is a 2023 year date.

this is what it shows me. (No restrictions listed for reselling it)

 

[chalupacabre]

F around and find out.

Tesla has refused software updates to some (secondhand) owners. CT will require constant software updates because that what Tesla does. DON'T BUY A TESLA WITHOUT OTAU ABILITY, might as well own an ICE.

 

[chalupacabre]

What about rental/leasing?

 

[KScheidt]

Here are the people “in line” ahead of you, “profiteering“ off the Cybertruck, all with Tesla’s blessing and encouragement





And now, for the rare few true ‘flippers’ with only one or two orders, some will also be incentivized to go ahead and take the truck, rent/loan for a year, and on day 365 sell for the remaining profit

If anything, now they get the advantages of a commercial vehicle tax/deduction, too!

Honestly, I'm low enough in line (~20K-ish) that region/geography will probably play a bigger role in my delivery date than the line itself. Still, after a few years of dealing with this hustle/reseller culture, I'm largely fine with manufacturers and retailers trying to find ways to stymie it (even if it impacts me to a degree). When I was building a computer during the pandemic I had to battle resellers and bots for a GPU, when my kids (who love Space Jam/Michael Jordan/basketball) grow out of their AJ1s every three months I have to battle resellers and bots to snag a pair in the next size up, gym equipment, event tickets, houses, the list goes on. Nowadays it seems like anytime something has the potential for resale due to scarcity or demand, people (or "companies") purchase it with the sole intention of flipping it for a profit at the expense of the end-consumer and I'm over it.

As far as "The Kilowatts" and others who intend to rent them or use them in some form of business/income generation, I have less of an issue with that. That serves a need and adds "value" by way of making the vehicle available for end-consumers in the form of rentals. This is a stark contrast from someone whose only motive is to purchase and resell to an end-consumer while extracting a profit. There is no value added there.

You are right. I didn't realize it was on the Tesla site. I thought it was leaked doc. So yeah, that should be enough, but about that midgate?

Haha, that was a joke that anyone who doesn't believe the validity of this contract language (directly from Tesla) will probably still be claiming the existence of a Mid-Gate after the November 30th event (hosted by Tesla) which should provide a definitive answer to that speculation.

 

[KScheidt]

Hmmm something is not matching.
Go to https://www.tesla.com/cybertruck/design#payment, click on the Cybertruck Pre-Order Agreement.

The agreement post to the forum shows a 2022 year date.
The one that comes up is a 2023 year date.

this is what it shows me. (No restrictions listed for reselling it)

That is a "Pre-Order" agreement. When you actually place the order/make the purchase you will have to sign the Order/Purchase Agreement which according to Tesla's website has the updated terms shared on this post.

 

[chalupacabre]

REALLY, blow up the line? To hell with all of us people that put $100 in Tesla's account 4 years ago? Are you telling everyone on this forum to F-Off?

There is no line, rather an order number. Tesla will sell to who they want. Do they want cash or want to build an in-house finance company? Always their choice. Our $100 is Tesla's money now. Try to get a refund.

 

[cvalue13]

Honestly, I'm low enough in line (~20K-ish) that region/geography will probably play a bigger role in my delivery date than the line itself. Still, after a few years of dealing with this hustle/reseller culture, I'm largely fine with manufacturers and retailers trying to find ways to stymie it (even if it impacts me to a degree). When I was building a computer during the pandemic I had to battle resellers and bots for a GPU, when my kids (who love Space Jam/Michael Jordan/basketball) grow out of their AJ1s every three months I have to battle resellers and bots to snag a pair in the next size up, gym equipment, event tickets, houses, the list goes on. Nowadays it seems like anytime something has the potential for resale due to scarcity or demand, people (or "companies") purchase it with the sole intention of flipping it for a profit at the expense of the end-consumer and I'm over it.

Hey, I get the frustration with flippers. I have several hobbies where they are an issue. (Though, in most of those other industries, the companies intentionally desire the secondary premium market.)

The question here isn't whether flippers are bad and should be discouraged. The question isn't also whether a specific person's (often uninformed) personal view of the risk to themselves makes it a tolerable "cost" for them alone to pay.

The question is whether, at a population level, Tesla is throwing the baby out with the bathwater by imposing a hamfisted "solution" to one problem, only to create a different set of problems - and then performing the calculation as to whether the solution has a net positive effect.

While I don't exclaim prescience, I do this sort of stuff for a living. I have made a profession of guiding people through business decisions exactly like this one, but where far more is on the line.

And whether for myself personally, or for others who may benefit from it, I'm very comfortable in giving my risk-adjusted summation of this situation:

For many legitimate, good-intentioned, buyers, this provision will result in material downsides - and for Tesla, just a few of those with the right fact patterns, will result in blow-back that does more to undermine customer confidence than support it. And even before this happens, the existence of this provision will cool interest in purchasing the Cybertruck by many otherwise viable customers. This cooling effect will broaden as the blow-back and bad press accumulates. At which point, best case, Tesla walks back the provision only after the damage has been done.​

Tesla isn't known for making good legal/commercial decisions of this nature. In fact, they're notorious for the opposite. It's no accident that Tesla's general counsel was for 5 years Musk's personal divorce lawyer. It's absurd.

Add this provision to the pile of Tesla's poor legal-commercial judgment.

 

[Usachris]

lol. All these people talking about “going to court” when in reality they will be going to arbitration.

 

[Coolbreeze704]

lol. All these people talking about “going to court” when in reality they will be going to arbitration.

Great Avatar!

 

[CyberGus]

lol. All these people talking about “going to court” when in reality they will be going to arbitration.

You can opt out of arbitration.

https://teslamotorsclub.com/tmc/thr...opt-out-of-arbitration-within-30-days.312927/

 

[HaulingAss]

Will this affect financing?
Such a stipulation makes the asset less liquid and higher risk for a lender

Actually, the terms of the Cybertruck purchase/sale agreement make the truck a lower risk for lenders because it shows that Tesla is anticipating selling it for below its actual market value, for at least the first year.

Also, by obtaining the right to buy it back for the purchase price minus only 25 cents per mile, Tesla has created a potential market for the truck in the first year of ownership that normally doesn't exist. Most vehicles lose around 20% value in the first year of being new. If a Cybertruck sells for $60K, the purchaser would have to drive it 48K miles in the first year (or damage it) for Tesla to legally be able to buy it for 20% less than the original purchase price.

If Tesla elects to not buy it back, the original purchaser is free to sell it for whatever the market will bear, just like any vehicle without a right of first refusal clause.

In otherwords, this clause will not give lenders pause, it will act like a potential buyer, should the bank need to repo it. Banks do not like to own used cars, they want cash.

 

[HaulingAss]

There is no line, rather an order number. Tesla will sell to who they want. Do they want cash or want to build an in-house finance company? Always their choice. Our $100 is Tesla's money now. Try to get a refund.

People have already recieved their $100 back, when they asked for it. Tesla says allow up to 30 days. I encourage people to try this, it really works! Don't take my word for it, find out yourself!

 

[Gurule92]

Hmmm something is not matching.
Go to https://www.tesla.com/cybertruck/design#payment, click on the Cybertruck Pre-Order Agreement.

The agreement post to the forum shows a 2022 year date.
The one that comes up is a 2023 year date.

this is what it shows me. (No restrictions listed for reselling it)

The agreement that people are posting to the forum (which is from tesla) Is the agreement that you get when you go to buy a car that is actually posted.

The cybertruck blurb is on the document for MY,M3 and MS.

The cybertruck one isnt as important because you cant really buy the vehicle. I am sure when the time comes you will have to agree in some way

 

[dLux]

I still have not found a single evidence of this text in any of the following. I think it is either fake, or Tesla has removed it already.

* https://www.tesla.com/configurator/api/v3/terms?locale=en_US&model=m3&saleType=Sale this document does not have the given paragraph.
* The current CyberTruck pre-order agreement doesn't have that paragraph.
* Neither of my CT reservations' Order Agreement has that paragraph.

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