Tesla Walks Back Threats Of Legal Action Against Cybertruck Resellers
Portfolio Pulse from Benzinga Neuro
Tesla Inc. (NASDAQ:TSLA) has removed a clause from their Motor Vehicle Order Agreement that threatened legal action against Cybertruck owners who resell their vehicles within the first year of ownership. The clause, which could have led to a $50,000 lawsuit and refusal of future vehicle sales, was specific to the Cybertruck and has been eliminated without explanation from Tesla. The Cybertruck is expected to start deliveries by the end of the month, with an event scheduled for Nov. 30 at the Texas Gigafactory.
November 15, 2023 | 4:11 am
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POSITIVE IMPACT
Tesla's removal of the legal action clause against Cybertruck resellers may positively influence consumer sentiment and potentially increase demand, as it removes a barrier to resale. The anticipation for the Cybertruck deliveries could also drive positive momentum.
The removal of the clause may be seen as a consumer-friendly move, which could improve Tesla's brand image and customer relations. This could lead to increased demand for the Cybertruck, especially among those who were previously deterred by the resale restriction. As the Cybertruck is a significant new product for Tesla, news related to it is likely to have a notable impact on the stock. However, without further details on the reasons behind the policy change, the full impact remains uncertain.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80