Tesla Cybertruck $50,000 Anti-Flipping Clause Is Gone Again

The on-again, off-again deterrent has reportedly been removed from the updated version of the sales agreement.

Photo by: InsideEVs

Iulian Dnistran

By: Iulian Dnistran

Aug 21, 2024 at 4:33am ET

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Tesla quietly removed a clause from the Cybertruck order agreement that said owners could face a $50,000 penalty if they resold the EV without the company’s agreement.
The clause was put in place in November of last year. A few days later, it was removed, only to reappear a month later.

Upcoming Tesla Cybertruck owners who will want to sell their electric pickup for whatever reason after getting delivery can do so without worrying about a costly $50,000 no-resale clause.

That’s because the anti-flipping part of the sales agreement has been removed once again from the document, as uncovered by Tesla enthusiast @TheRealDriiZZy on X. The penalty was put in place in November of last year after deliveries of the angular EV started trickling to reservation holders, some of which turned out to be car flippers who instantly put their shiny new pickups for sale at astronomical prices on the used market.

The clause, which was only present in the Cybertruck order agreement, said that Tesla had the first right of refusal to purchase any truck sold up to a year after the original owner took delivery. Otherwise, a $50,000 penalty was in store for anyone who resold their Cybertruck without the automaker’s explicit permission.

The anti-flipper clause, as it became known online, went away just a few days after being put into place after backlash from owners and fans alike, only to be reinstated a month later.

Now, the paragraph that warned owners of getting hit with a hefty financial penalty is once again nowhere to be found on the updated order agreement. According to several Cybertruck owners who got their EVs in recent months, the paragraph containing the anti-resale clause was absent for cars delivered as early as March.

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Here’s what the now-removed clause used to say:

For Cybertruck Only: 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."

It’s unclear why Tesla chose to remove the controversial legal wording, but it’s likely because the flippers that asked as much as $350,000 for a Cybertruck on the second-hand market are no longer in business because the craze has significantly toned down in recent months. Moreover, Tesla no longer requires a reservation and can deliver a brand-new Cybertruck in less than a month since placing an order–a huge improvement from last year’s situation when wannabe customers had to wait up to two years to get their EVs delivered.