The first Tesla Inc. (NASDAQ: TSLA) Cybertruck delivery is set for November 30. Between then and the end of the year, Tesla is likely to deliver only a relative handful of Cybertrucks to lucky buyers. Indeed, even some unlucky buyers may get one. And they’ll be stuck with the Cybertruck for at least one year.
Tesla has revised its contract terms for Cybertruck buyers:
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.
In some cases, buyers may receive permission from Tesla to sell their Cybertruck in less than a year, with written consent. Buyers who resell the truck anyway or who Tesla believes might resell the truck without consent may be forced to pay up to $50,000 in liquidated damages.
That’s not all. If buyers are willing to accept all of Tesla’s punishment and still go ahead and resell the Cybertruck, “Tesla may also refuse to sell you any future vehicles.” Ooh, that’ll sting.
Buying and flipping are not in Tesla’s best interestKelley Blue Book experts expect the starting price for a single-motor, rear-drive Cybertruck to be around $50,000. KBB expects to see a price of around $60,000 for the dual-motor version and $70,000 for the triple-motor model. So far, Tesla’s only price point is the $100 order deposit fee.
As of mid-October, Tesla had accumulated 1.9 million orders for Cybertruck. That’s more than a full year’s production of all its current models. Demand is very strong.
By demanding that buyers sell the truck back to the company, Tesla prevents buyers from selling the Cybertruck to another buyer at a price above the MSRP. That ensures that only Tesla is selling new vehicles for at least 5 years.
Is it legal?That remains to be determined. Because the constraint on flipping is in the contract and buyers have to sign the contract (after reading it), the ban on resales appears to have the law on its side. But the contract’s restriction will be challenged. Without a doubt. Guaranteed.
Tesla stock traded up more than 5% in Tuesday’s premarket session, but the gain dipped to around 4.2% after the opening bell to $233.30, in a 52-week range of $101.81 to $299.29. The company raised prices modestly in China on Model 3 and Model Y vehicles.
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