Tesla Inc. (NASDAQ:TSLA) has reportedly removed a clause in their Motor Vehicle Order Agreement that threatened legal action against Cybertruck owners who resell their vehicles within the first year of ownership.
What Happened: The contentious provision, specific to the Cybertruck, has been excised from Tesla’s agreement, reported Business Insider.
Initially, this clause allowed Tesla to sue for $50,000 if a Cybertruck was sold within the first year and even gave Tesla the right to refuse future vehicle sales to those who violated this rule.
This Tuesday, the section was removed from the agreement. The motivation behind Tesla’s sudden policy shift remains unexplained, with the company yet to offer any formal commentary on the matter.
Speculation by Wedbush analyst Dan Ives in a Bloomberg Radio interview suggests that Tesla’s original aim may have been to regulate the resale market for the Cybertruck as the company ramps up its production capacity.
The Cybertruck, a subject of significant debate since its 2019 reveal, is expected to start reaching consumers by the end of this month. The delivery event for Tesla’s highly-anticipated vehicle is set for Nov. 30 at the Texas Gigafactory.
Why It Matters: This policy reversal comes on the heels of a recent update to Tesla’s Motor Vehicle Order Agreement that specifically targeted Cybertruck customers. The agreement included a “No Resellers; Discontinuation; Cancellation” section.
This stipulated that Cybertruck owners would not sell or attempt to sell the vehicle within the first year following delivery. If an owner sold the Cybertruck under exceptional circumstances and Tesla agreed to an exception to its no-reseller policy, the seller was required to inform Tesla in writing and allow the company a reasonable timeframe to buy the vehicle at a specified price.
