Photo: Cars and Bids
Despite Tesla's no-resale clause, the Foundation Series Cybertrucks have been traded behind the scenes and, lately, even on car sales platforms. However, the prices have quickly dropped since the first Cybertruck sold at auction for $244,000. The last known price for a flipped Cybertruck was $171,000, although an ongoing auction has the highest bid at $155,000 one day before closing.
Tesla wanted to prevent flippers from exploiting the Cybertruck's popularity, so it introduced a no-resale clause in the sales contract. According to this clause, buyers of a Foundation Series Cybertruck cannot sell it in the first year after delivery unless Tesla gives them the go-ahead. Breaching this rule attracts a $50,000 penalty or more if the Cybertruck flipping results in a profit higher than $50K.
As airtight as the no-resale clause seems, it was not enough to deter people from selling their trucks. Maybe it was because people wanted to buy a Cybertruck so much that they would pay whatever it took. Maybe those selling one were so desperate to profit that they dismissed the possibility of being called by Tesla's lawyers. Or maybe, as one of the dealers who intermediated the first known Cybertruck auction told us, you thought Tesla couldn't enforce the no-resale rule.
Whatever the case, people started flipping the Cybertruck like there was no tomorrow. However, at some point, Tesla intervened and blacklisted a Cybertruck owner who tried to sell his truck on a car sales platform. Tesla did this even though no money changed hands, and the sale was never completed. The fact that the Cybertruck was listed for sale was enough to trigger the action.
After all, it's impossible to prove the Cybertruck was sold when the title hasn't changed. One method people thought was rock solid to circumvent the no-resale clause was signing a lease contract instead of a sales one. This way, they can mask the sale, as they only transfer the title outside of the one year mentioned in the no-resale clause.
Tesla's blacklisting appears to be very efficient in curbing the Cybertruck flipping. The perspective of being unable to order a car from Tesla ever again must be frightening. However, another market trend might make the no-resale clause obsolete. Despite Tesla enforcing the no-resale clause could dry out the Cybertruck resale market, the prices have been dropping like a rock. The first Cybertruck sold at a Manheim auction at the end of February raised $244,000. However, the prices have tanked since then with each subsequent transaction.
John Clay Wolfe, founder of Give Me The VIN, the vehicle wholesaler that sold the $244K Cybertruck, noticed an abrupt drop in interest in the Cybertruck. All other trucks he sold were under $200K, with the latest units sold for $175,000 last week and $171,000 on Wednesday. Moreover, an ongoing Cybertruck auction has the highest bid at $155,000 one day before closing. If the trend continues, you'll soon be able to buy a Cybertruck at almost no premium.
As airtight as the no-resale clause seems, it was not enough to deter people from selling their trucks. Maybe it was because people wanted to buy a Cybertruck so much that they would pay whatever it took. Maybe those selling one were so desperate to profit that they dismissed the possibility of being called by Tesla's lawyers. Or maybe, as one of the dealers who intermediated the first known Cybertruck auction told us, you thought Tesla couldn't enforce the no-resale rule.
Whatever the case, people started flipping the Cybertruck like there was no tomorrow. However, at some point, Tesla intervened and blacklisted a Cybertruck owner who tried to sell his truck on a car sales platform. Tesla did this even though no money changed hands, and the sale was never completed. The fact that the Cybertruck was listed for sale was enough to trigger the action.
After all, it's impossible to prove the Cybertruck was sold when the title hasn't changed. One method people thought was rock solid to circumvent the no-resale clause was signing a lease contract instead of a sales one. This way, they can mask the sale, as they only transfer the title outside of the one year mentioned in the no-resale clause.
Tesla's blacklisting appears to be very efficient in curbing the Cybertruck flipping. The perspective of being unable to order a car from Tesla ever again must be frightening. However, another market trend might make the no-resale clause obsolete. Despite Tesla enforcing the no-resale clause could dry out the Cybertruck resale market, the prices have been dropping like a rock. The first Cybertruck sold at a Manheim auction at the end of February raised $244,000. However, the prices have tanked since then with each subsequent transaction.
John Clay Wolfe, founder of Give Me The VIN, the vehicle wholesaler that sold the $244K Cybertruck, noticed an abrupt drop in interest in the Cybertruck. All other trucks he sold were under $200K, with the latest units sold for $175,000 last week and $171,000 on Wednesday. Moreover, an ongoing Cybertruck auction has the highest bid at $155,000 one day before closing. If the trend continues, you'll soon be able to buy a Cybertruck at almost no premium.
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