Tesla Inc.’s Cybertruck may come with a one-year commitment for its future owners.
Tesla
TSLA,
tucked a surprising clause in its terms of service just for the unconventional-looking electric pickup truck, and the fine print says that owners agree to not sell or attempt to sell the truck within the first year of its delivery.
Tesla is scheduled to start sales of the Cybertruck on Nov. 30 after years of delays. Business Insider first reported the unusual Cybertruck’s item in the terms of service.
The EV maker said that owners hard-pressed to sell the truck in less than a year will have to notify the company, which would have to agree on whether an exception is warranted. Tesla would then have first dibs buying the vehicle back, minus 25 cents per mile driven and other caveats. “If Tesla declines to purchase your Vehicle, you may then resell your Vehicle to a third party only after receiving written consent from Tesla,” the company writes in its terms and conditions.
Don’t miss: There’s a new Tesla bear in town: EV maker is a ‘very expensive company,’ HSBC says
Scofflaws would be open to a lawsuit and perhaps never have a Tesla again.
“You agree that in the event you breach this provision, or Tesla has reasonable belief that you are about to breach this provision, 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,” the clause says. “Tesla may also refuse to sell you any
future vehicles.”
The Cybertruck was first unveiled in 2019. Tesla Chief Executive Elon Musk recently sought to temper expectations about the vehicle, saying that demand is not a problem, but the production ramp is steep.
Musk said that it will be a year to 18 months before the Cybertruck turns into a cash-flow contributor, and there will be “challenges” to reaching volume production.
“It’s our best product ever, but it is going to require immense work to reach volume production,” Musk said in a call last month following the company’s third-quarter results.
Tesla shares have far outperformed the broader index this year, up more than 80%. That compares with gains of around 15% for the S&P 500 index
SPX
in the same period.
Read the full article here
