The resale market for Tesla Inc.‘s TSLA Cybertruck is reportedly experiencing a significant downturn, with prices dropping drastically and resellers struggling to turn a profit.
What Happened: According to a report from Electrek on Thursday, the resale value of the Cybertruck has plummeted. Just a few weeks ago, the vehicle was selling for about twice its original price.
GIVE ME THE VIN President John Clay Wolfe told the media platform that while he sold two Cybertrucks for $195,500 and $189,000 two weeks ago, he sold another one for just $171,000 this week. “So for anyone paying attention, the market continues to go down on the Cybertruck,” Wolfe reportedly commented.
Why It Matters: The decline in the Cybertruck resale market follows a period of high demand. In March, Ford reportedly purchased a Cybertruck for $250,000 and began testing it at its proving grounds near Detroit, following a similar purchase by a Porsche dealer.
The recent drop in resale value could possibly be attributed to the increasing production of the Cybertruck. “Production is ramping,” Tesla CEO Elon Musk said in a recent post on X.
Tesla plans to eventually deliver 250,000 Cybertrucks per year. However, Musk has previously cautioned that this milestone will not be reached this year but only in 2025.
Resale Prohibition Clause: A clause within Tesla's motor vehicle agreement prohibits buyers from reselling the Cybertruck within a year of taking delivery. If a buyer wishes to sell within that period, they must inform the company in writing, and Tesla will have the option to repurchase the vehicle.
Even if Tesla declines to repurchase the vehicle, the buyer must obtain written consent from Tesla to resell it to a third party, as per the clause.
In the event of a breach of this clause, buyers could face a penalty of $50,000 or more, as stated by the company.
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