With Tesla's first Cybertruck deliveries expected later this month, a now-deleted update to the electric carmaker's terms of service said the firm could sue customers for $50,000 or more if they resell during the first year of ownership without first getting written permission from Tesla. The provision seemed designed to deter scalping for a car expected to be available only in limited quantities after CEO Elon Musk's statement that Tesla "dug our own grave with the Cybertruck."
But the clause was deleted from Tesla's terms just days after people noticed its appearance. It was still in the Tesla Motor Vehicle Order Agreement Terms & Conditions earlier today, but was removed from the document while we worked on this article. The document still has a more general rule against quick resales but without the lawsuit threat.
Tesla may have decided to remove the clause after several news reports spread word of the change over the weekend. It's not clear whether the company will bring the clause back in a modified form. We contacted Tesla and will update this article if we get a response.
Before the deletion, the document said Cybertruck buyers had to offer the car back to Tesla before any attempt to resell the vehicle within one year of delivery. If Tesla declines to buy the Cybertruck back, the owner could resell it only if Tesla provides "written consent." Tesla said it would seek an injunction and financial damages if you violate the provision, or if "Tesla has reasonable belief that you are about to breach this provision."
“Tesla may seek injunctive relief”
The now-deleted clause read as follows:
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. Notwithstanding the foregoing, if you must sell the Vehicle within the first year following its delivery date for any unforeseen reason, and Tesla agrees that your reason warrants an exception to its no reseller policy, you agree to notify Tesla in writing and give Tesla reasonable time to purchase the Vehicle from you at its sole discretion and at the purchase price listed on your Final Price Sheet less $0.25/mile driven, reasonable wear and tear, and the cost to repair the Vehicle to Tesla's Used Vehicle Cosmetic and Mechanical Standards.
If Tesla declines to purchase your Vehicle, you may then resell your Vehicle to a third party only after receiving written consent from Tesla. 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. Tesla may also refuse to sell you any future vehicles.
Here's a screenshot of the clause that we took earlier today:
The Cybertruck was first revealed in 2019. According to Car and Driver, it is expected to cost about $70,000 for a dual-motor version and $80,000 for a three-motor version. "While a starting price of about $40,000 was touted at the Cybertruck's reveal back in 2019, that price was attached to a single-motor rear-wheel drive model," Can and Driver wrote. "For the Cybertruck's first year on the market though, governmental documents indicate that Tesla will only offer dual- and tri-motor all-wheel drive models which will carry higher starting prices."
“No resellers” clause still intact
Tesla's terms and conditions already contained a "no resellers" clause that wasn't specific to the Cybertruck, but that term doesn't mention anything about seeking injunctions or financial damages in court. The earlier term, which was not deleted, says that Tesla "may unilaterally cancel any order that we believe has been made with a view toward resale of the Vehicle or that has otherwise been made in bad faith, and we'll keep your Order Fee, Order Deposit and Transportation Fee."
Another Tesla document that lays out terms and conditions for Cybertruck pre-orders includes a similar no-resale clause but nothing about suing customers for $50,000 or more.
An Electrek report on Tesla's Cybertruck resale clause pointed out that some of Tesla's previous cars "ended up being bought by other automakers, presumably for reverse-engineering purposes." Electrek also noted that the possibility of resale for limited-availability cars "does make for a more chaotic release, with buyers scrambling to try to get an early car and scalp it for profits, and low-VIN cars that traditionally have more problems ending up in the hands of people who paid way too much and who don't have a pre-existing relationship with the company."
Car enthusiasts have been speculating for months that Cybertruck demand could result in plenty of scalping. Tesla has scheduled a November 30 event to mark the first deliveries of the Cybertruck. Tesla has said it can make more than 125,000 Cybertrucks a year, and possibly 250,000 in 2025.
Ford sued John Cena over resale
Courts can block terms of service and other contracts that are found to be "unconscionable." But lawyer Akiva Cohen wrote on Bluesky that, generally speaking, "Contracts can include whatever terms the parties agree to. If you buy on those terms, they're enforceable." Cohen also noted that the Tesla clause was "structured as a repurchase option/right of first refusal" rather than a complete ban on resale, which could prevent a court from viewing the contract as unfair.
Other carmakers have enforced no-resale agreements, though the practice is most common with very expensive, limited-edition cars. In November 2017, Ford sued actor and professional wrestler John Cena for reselling a custom-made Ford GT that had a $450,000 suggested retail price.
"Mr. Cena flipped his vehicle shortly after taking delivery of it, despite his agreement with Ford to maintain ownership of the vehicle for 24 months," and "unfairly made a large profit from the unauthorized resale flip of the vehicle," Ford's lawsuit said.
Cena settled with Ford less than a year later, paying the company an undisclosed sum that was then donated to charity. "I love the Ford GT and apologize to Ford, and encourage others who own the car to respect the contract," Cena said in a statement on the settlement.
Ferrari enforces similar terms. "Ferrari likes to maintain control over its cars even after selling them, and it does that by either barring the owner from selling in the first year or forcing them to inform the marque before selling... Ferrari also likes to have the option of taking back the car, should the owner want to part with it," an Autoevolution article in 2020 said.
