FYI: Tesla Removes Controversial Anti-Flipper Clause for Cybertruck Orders
By William Kouch, Editor of Automotive.fyi
In a surprising move that will likely please future Cybertruck owners, Tesla has once again removed a controversial clause from its order agreement. This clause imposed a hefty $50,000 penalty on owners who sold their vehicles without Tesla’s explicit consent. Initially introduced in November 2023, this stipulation aimed to combat the swift resale of the much-anticipated electric pickup at inflated prices.
Timeline of the Anti-Flipper Clause
The anti-flipper clause didn’t have a straightforward history. It was first implemented when deliveries of the Cybertruck commenced last year. The clause disappeared just days later before reappearing about a month down the line. This flip-flop generated significant backlash from owners and Tesla enthusiasts alike.
What Was the Anti-Flipper Clause?
Exclusively attached to the Cybertruck order agreement, the clause stipulated that Tesla retained the first right of refusal to buy back any Cybertruck sold within a year of the original delivery. If an owner sold the truck without Tesla’s agreement within that period, they faced a $50,000 penalty. The clause read:
"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.
… 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…"
Recent Developments and Current Status
As of recent months, the anti-flipper clause has once again vanished from the Cybertruck order agreement. Owners taking delivery as recently as March have confirmed the absence of this clause in their documents.
Possible Reasons for Removal
While Tesla has not publicly explained the reasoning behind the removal, there are several factors to consider:
- Decreased Demand: The frenzy that initially surrounded the launch of the Cybertruck has significantly toned down. The once sky-high resale prices, seen as high as $350,000, appear to have dissipated.
- Improved Supply: Tesla has dramatically improved its delivery timelines. A brand-new Cybertruck can now be delivered within a month of placing an order—a vast improvement from last year when customers faced waiting periods extending up to two years.
Conclusion
The removal of the anti-flipper clause is a clear indication that Tesla is adapting to evolving market conditions. By eliminating additional resale restrictions, they may be trying to make the purchasing process more attractive and straightforward for potential buyers.
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William Kouch
Editor of Automotive.fyi
