Tesla Threatens Cybertruck Buyers With Lawsuit And $50K In Damages If They Opt To Sell Within A Year Of Purchase
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) has updated its 'Motor Vehicle Order Agreement' for the Cybertruck, including a clause that prohibits buyers from reselling the vehicle within the first year of purchase. If a buyer breaches this provision, Tesla may seek $50,000 in liquidated damages or the sale value, whichever is greater. The company may also refuse to sell any future Tesla EVs to the user. This move has sparked mixed reactions on social media, with some supporting the decision to prevent flipping for profit, while others question the enforceability of the agreement. The Cybertruck is expected to significantly boost Tesla's sales volume and have a halo effect on other models, despite Elon Musk's caution about the ramp-up difficulty.
November 12, 2023 | 4:47 pm
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NEUTRAL IMPACT
Tesla's new Cybertruck resale restriction could impact the stock by potentially reducing speculative buying and flipping, which may lead to a more stable initial ownership base. However, the enforceability of such a clause and its impact on consumer sentiment could be a concern for investors.
The resale restriction is directly related to Tesla's sales strategy and could influence the stock price by affecting demand dynamics and consumer perception. The impact is uncertain due to potential legal challenges and market reaction, hence a neutral score with moderate importance and confidence.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 100