Tesla, led by Elon Musk, has introduced a clause in the purchase agreement for the Model S and Model X ‘Signature’ edition models. This clause prevents customers from selling their vehicles within a year of buying the vehicle.
Details of the Clause
The clause, as shared by a user on social media, states that the buyer agrees not to sell or attempt to sell the vehicle within the first year following its delivery date. This is due to the limited release nature of the ‘Signature’ edition models. If unforeseen circumstances force the buyer to sell the vehicle, they must notify Tesla and give the company reasonable time to purchase the vehicle at its sole discretion. The purchase price would be based on the original price listed on the Final Price Sheet, minus $0.25 per mile driven.
Consequences of Breaching the Clause
If the customer breaches the terms of the clause, Tesla may seek injunctive relief to prevent the transfer of title of the vehicle or demand liquidated damages of $50,000 or the value received as consideration for the sale or transfer, whichever is greater. Additionally, Tesla could refuse to sell vehicles to customers in the future if they breach the clause.
Other Developments at Tesla
Besides the resale restriction, Tesla has been working on new models, including an all-new model targeting the affordable EV space. There have also been rumors of a new vehicle with a 7-seater layout. Furthermore, Tesla’s Full Self-Driving (FSD) technology has received regulatory approval from the Netherlands Vehicle Authority (RDW), which could provide a major boost to the automaker’s self-driving efforts.
Recent Price Action
Tesla’s stock price has seen some movement, surging 0.67% to $351.30 during the after-hours trading session on Friday. However, according to some rankings, Tesla offers poor Momentum and Value, while also failing to provide a favorable price trend in the Short, Medium, and Long term.
Conclusion
The resale restriction on the ‘Signature’ edition Model S and X is a significant development for Tesla customers. With the company working on new models and technologies, it will be interesting to see how this restriction affects the demand for these limited-edition vehicles. As always, the automotive industry is evolving, and Tesla is at the forefront of this evolution.