Skip to main content

Tesla walks back plan to sue Cybertruck flippers (but resales are still discouraged)

Tesla isn't the only automaker with this type of policy

Tesla Cybertruck render on the road
Tesla

Tesla is rolling back plans to sue people who flip their Cybertrucks just days after the automaker made headlines for a new clause in its Terms & Conditions, which said the company might pursue legal action against Cybertruck resellers when the long-awaited truck finally makes its debut.

Recommended Videos

The clause threatening legal action seems to have disappeared from the company’s “Motor Vehicle Order Agreement Terms & Conditions,” though resales are still discouraged. Although a lawsuit may be off the table, Tesla is still threatening to cancel pre-orders while keeping the “Order Fee, Order Deposit and Transportation Fee” if it believes the order has “has been made with a view toward resale of the Vehicle or that has otherwise been made in bad faith.”

The EV manufacturer initially added a clause to the sale contract allowing it to sue people who resold their Cybertrucks within a year for $50,000 or the apparent profits from the sale — whatever was greater. If a buyer had wanted to resell their truck, they would have to give Tesla the right to repurchase it for its original sale price minus $0.25 for every mile it had been driven.

Now that the clause has gone, flipping could be a major issue. It has been suggested that there are up to two million pre-orders in place for the Tesla Cybertruck, and it may take up to a decade to clear that backlog. That could also be a “best case” scenario, with Tesla hoping production may hit 250,000 vehicles per year by 2025. However, as with the truck’s release date, those figures could be optimistic.

The vehicle isn’t even out yet, and people with early pre-orders are already attempting to flip them. Some of the orders, which were placed shortly after the Cybertruck’s 2019 unveiling, have been listed for as much as $10,000 on eBay.

A gavel
Sergei Tokmakov, Esq / Pixabay

Legal threats are nothing new

Anti-flipping clauses are nothing new in the automotive world, and if Tesla stuck to its guns, then it wouldn’t be anything novel. Manufacturers like Ford have anti-flipping clauses for several vehicles, including the Ford GT. Ford also suggested its dealers implement a similar clause when the F-150 Lightning was in high demand — in an effort to discourage scalping. These clauses often have a time limit of one year or so and are aggressively enforced when implemented.

One high-profile case saw the Detroit-based manufacturer sue professional wrestler John Cena after the WWE star resold his GT for a profit. The case was settled out of court, with the money Cena made on the sale going to charity and an apology being issued.

Ferrari is also famous for the clauses bundled with its sales, some of which are similar to the ones Tesla proposed. If you’re among the few people allowed to buy a Ferrari with a limited run, then Ferrari wants first dibs if you ever sell it. Failure to adhere to this clause could result in a lawsuit and will definitely see you land on the company’s infamous blacklist. Porsche, GM, Aston Martin, and Rolls Royce are among the other companies that implement anti-flipping clauses in the sales contracts of their most anticipated or in-demand vehicles.

Topics
Dave McQuilling
Dave has spent pretty much his entire career as a journalist; this has included jobs at newspapers, TV stations, on the…
Tesla unleashes the Model 3 Performance: More than the sum of its parts
The fastest small Tesla is a bargain speedster
Red Tesla Model 3 Performance facing straight on parked on dark metal plates with a dark wall in the background.

Earlier in 2024, Tesla refreshed the Model 3 rear-wheel drive and dual-motor AWD versions but did not update the Model 3 Performance variant. The wait is over, and with Tesla's recent price reductions, the refreshed Model 3 Performance is an amazing deal for a car with sub-3-second 0-60 mph acceleration and nearly 300 miles of range.
Why the Tesla Model 3 Performance matters so much

The Tesla Model 3 Performance fills a void in the existing lineup since the January 2024 refresh. The update included new headlight and taillight designs and new color choices, including the Ultra Red in the Model 3 Performance photo above. The new Model 3s also gained ventilated front seats, an 8-inch display for rear-seat passengers, a quieter cabin, and more luxurious seating. The updates were welcome, but removing the Performance trim from Tesla's online order sheet disappointed buyers who wanted even more speed than the RWD and standard dual-motor AWD versions.
Tesla Model 3 Performance: the go-fast parts

Read more
Expectation vs. reality: Cybertruck Basecamp rooftop tent is another disappointment
Tesla's camping accessory looks nothing like the photos
Tesla Cybertruck at a camping site

The Tesla Cybertruck hasn’t exactly worked out, and the controversial vehicle’s $3000 “Basecamp” tent accessory seems to be the latest letdown for the vehicle’s early adopters. Early renders showed a futuristic covering that would transform the truck’s bed into a glamorous camping space. Unfortunately, that isn’t what customers seem to be receiving.

Instead, Cybertruck owners who stumped up the extra $3,000 seem to be receiving a slightly cheap-looking, windowless, polyester tent with an interior akin to one of those bags delivery drivers keep pizza warm in. Looks can be a little deceiving here, as the materials used are allegedly of good quality. Despite this, it is still a far cry from what was promised -- like many other elements of Elon Musk’s electric truck. Plus, there could be some quality control issues with the tent’s assembly, as the stitching on one of the nylon webbing straps appears to be coming apart after just one setup.

Read more
New viral video shows Tesla’s Cybertruck’s shatterproof glass has come a long way
The Cybertruck's windows aren't just bulletproof
Tesla Cybertruck parked indoors in front of a black wall with headlights and taillights on.

A key feature of the Tesla Cybertruck seemingly makes the vehicle immune to one common car crime. Thieves in San Francisco, commonly known as “blippers,” were witnessed trying and failing to smash the vehicle’s “bulletproof” armored glass. Some kind of pick appeared to be used during the 45-second-long assault on the truck’s perdurable panes.

The would-be thief in question was even videoed jumping on the Cybertruck’s roof, but even that wasn’t enough to force an opening. The whole incident, along with photos of the truck’s windows, was shared on X by user Arash Malek, who added, “Cybertruck is California-proof. Armored glass beats criminals trying their best to break in – even when jumping on the roof.”

Read more