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Tesla reinstates clause that threatens to sue Cybertruck owners for $50,000 if they resell the vehicles within a year

Dec 12, 2023, 19:17 IST
Insider
The Telsa Cybertruck.Robyn Beck / AFP
  • Tesla has reportedly reinstated its threat to sue Cybertruck owners if they resell the vehicles.
  • The clause was included on contracts for the limited launch edition "Foundation Series" Cybertruck.
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Tesla has reportedly revived a clause that threatened to sue Cybertruck buyers if they resold their vehicles within the first year.

One buyer who ordered the limited launch edition "Foundation Series" Cybertruck told Ars Technica the contract they received from Tesla included the clause.

The contract, which was reviewed by the technology website, required Cybertruck owners to offer the car back to Tesla at a lower price before attempting to resell it. It also said Cybertrucks could only be resold if Tesla provided owners with "written consent," per Ars Technica.

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If those terms were breached, the clause said, "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."

The clause first appeared last month in an additional section of the EV company's Motor Vehicle Order Agreement titled "For Cybertruck Only."

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The section similarly said the company could sue for $50,000 if buyers sold their Cybertruck within the first year of ownership and that Tesla could refuse the sale of future vehicles to those who violated this rule.

The clause was later scrubbed from the public copy of the agreement.

It's unclear why the clause was included on the specific contracts or whether it would apply beyond the limited launch edition "Foundation Series" of the trucks.

Representatives for Tesla did not immediately respond to Business Insider's request for comment on the contracts, made outside normal working hours.

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