Early Cybertruck owners will be prevented from reselling their vehicles until a year after they take delivery, according to an update to Tesla’s Motor Vehicle Purchase Agreement.
And as hype has been building closer to release, an auction was held last month by the Petersen Automotive Museum in LA, where an “early Cybertruck VIN” was auctioned off for the cool sum of $400,000.
So you may be thinking: I have an early Cybertruck reservation, maybe I’ll be able to get a low VIN and do the same?
Well, not if Tesla has anything to say about it.
Turns out, Tesla will stop anyone from reselling a Cybertruck in the first year, and if a situation comes up where you have to resell the car, Tesla demands that you give it first right of refusal for the sale before putting it up to the public. And if you do resell your car and don’t tell Tesla about it, the company threatens to sue you for $50k (or more) and may not sell you any future vehicles.
The clause was added to Tesla’s Motor Vehicle Purchase Agreement, which you can read directly on its website. Under the “No Resellers” section, which normally stops dealerships from buying Teslas en masse to resell them, a section has been added labeled “For Cybertruck Only,” and reads thusly:
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.
Note that there are exceptions available – if you do have good reason to need to resell your vehicle, you can notify Tesla, and if Tesla says okay, then you can sell the car back to the company. But that depends on what buyback price Tesla comes up with, and whether it even decides to accept your reasoning in the first place.
Tesla is no stranger to having popular vehicles that resell for well over sticker price on release. Several of Tesla’s previous vehicles have trickled out onto the road in limited numbers at first, with early owners having the chance to resell them for much more than they paid.
Some of these early models have ended up being bought by other automakers, presumably for reverse-engineering purposes. And we could see that being the case with the Cybertruck, which has many aspects that are a departure from traditional vehicle manufacturing (extra-thick stainless steel body, 48-volt electrical architecture, etc.), which will certainly be of interest to other automakers.
And it does make for a more chaotic release, with buyers scrambling to try to get an early car and scalp it for profits, and low-VIN cars that traditionally have more problems ending up in the hands of people who paid way too much and who don’t have a pre-existing relationship with the company.
Tesla tried to control this with the Model 3 release, with the first several months of vehicles going to employees rather than the public, and the first public cars mainly going to people who already had a Tesla, were close to the factory, and who had camped out overnight to reserve one.
So there are certainly reasons that companies might want to place some limits on early cars.
And despite that this might seem legally unenforceable at first glance, these sorts of clauses are actually relatively common in the rare car world. For example, wrestler John Cena was one of the first to get a Ford GT in 2017, but resold the car within a few months in violation of a clause in Ford’s purchase agreement disallowing resale for two years. Ford sued him and the case ended up being settled with an apology by Cena and donation of proceeds to charity.
Ferrari is also notorious for this sort of behavior – to buy Ferrari’s limited-edition cars, you pretty much need to be on a list of known customers, and the company will refuse to sell cars to certain people for various reasons. Ferrari also has a first right of refusal contract, and may even prevent you from wrapping its cars.
But those cars are much more expensive and much more limited than the Cybertruck. Clauses like this are a lot rarer with vehicles that are meant to have mass appeal or to sell in large numbers – which Tesla has recently said is the case for Cybertruck.
Of particular note is that Tesla says Cybertrucks will “first be released in limited quantity.” While this seems like it would be true on its face for just about any vehicle, in Tesla’s Q3 update, the company said that it currently has production capacity of 125,000 vehicles a year.
While it perhaps will take a little time to ramp up to 125k from the start, this sounds like Tesla is promising to deliver six figures worth of cars in the next year. So early buyers may not be able to resell their cars until six figures worth of cars are out there.
Electrek’s Take
Regardless of how common or reasonable these clauses might be, it should be said that they are also quite unpopular. Nobody likes a scalper, but also nobody likes being told what they can’t do with their car.
Anyone who has walked into a Ferrari dealership can tell you that it’s not a great company to buy from. Unless they already know who you are, they act like you shouldn’t be there, like they couldn’t care less if you wanted to buy their car or not. They’re not selling the cars for you, they’re selling the cars for them.
It’s elitist, it’s haughty, and frankly, I think it makes a lot of people less interested in their cars, not more. And in the early days of the Roadster, one of Tesla’s sales tactics was to tell customers to head to the Ferrari dealership next door and see if they’ll even talk to you, then come back over here if they won’t.
So it’s disappointing to see a similar clause in Tesla’s purchase agreement, especially without any sort of explanation of why or how long it will be there. Hopefully not long.
One thing we don’t know is how long the clause will last. Will this only apply to the first month or two of deliveries, to everyone in 2023, or to everyone in the first year? If Tesla does plan to release five or six figures worth of trucks, it seems a little onerous to have a year worth of reselling provisions for that many owners. If it’s only for early employee/VIP purchases and will disappear as the floodgates open to wide delivery in significant production numbers, then that’s not so big of a deal.
We’d ask Tesla about this, but they have no PR department, so you’ll have to come up with your own explanation.
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Owner-operators are a huge part of the heavy truck market, and they’ve been among the most hesitant groups to transition from diesel to electric semi trucks. That may be changing, however, as Saldivar’s Trucking becomes first independent owner-operator in the US to deploy a Volvo VNR Electric Class 8 truck.
The higher up-front cost of electric semi trucks has been a huge obstacle for smaller fleets. That’s there are incentives from governments, utilities, and even non-profits to help overcome that initial obstacle. And the smart dealers are the ones who are putting in the hours to learn about those incentives, educate their customers, and ultimately sell more vehicles.
TEC Equipment is a smart dealer, and they worked closely with South Coast Air Quality Management District to secure the CARB funding and ensure Saldivar’s was able to ssecure $410,000 in funding from CARB’s On-Road Heavy-Duty Voucher Incentive Program (HVIP), which provides funding to replace older, heavy-duty trucks with zero-emission vehicles. The program is directed exclusively to small fleets with 10 vehicles or less that operate in California and aims to bridge the gap between the regulatory push for clean transportation and the financial realities faced by small business owners.
“TEC Equipment has been instrumental in supporting owner-operators like Saldivar’s Trucking through the transition to battery-electric vehicles,” explains Peter Voorhoeve, president of Volvo Trucks North America. “Their dedication to providing comprehensive support and securing necessary funding demonstrates how crucial dealer partners are in turning the vision of owning a battery-electric vehicle into a reality for fleets of all sizes.”
Saldivar’s Volvo VNR Electric features a six-battery configuration, with 565 kWh of storage capacity and a 250 kW charging capability. The zero-tailpipe emission truck can charge to 80% in 90 minutes to provide a range of up to 275 miles.
“While large fleets often make headlines for their ambitious investments in battery-electric vehicles, nearly half of the 3.5 million professional truck drivers in the U.S. are owner-operators running their businesses with just one truck,” adds Voorhoeve. “These small operations face unique challenges, from the initial capital investment to securing adequate charging infrastructure … this collaboration is a perfect example of the important role to be played by truck dealers and why stakeholders need to work together to succeed in this new era of sustainable transportation.” We need solutions that work for different fleets of all sizes in the marketplace,” added Voorhoeve.”
Electrek’s Take
Electrifying America’s commercial trucking fleet can’t happen soon enough – for the health of the people who live and work near these vehicles, the health of the planet they drive on, and (thanks to their substantially lower operating costs) the health of the businesses that deploy them. TEC is doing a great job advancing the cause, and acting as true expert partners for their customers.
Mercedes released a look at the powertrain technology of its upcoming electric CLA, and it includes tons of neat EV tech and some interesting options for battery technology and what looks to be the most flexible charging system we’ve seen yet.
We’ve already learned a fair amount about the CLA after first seeing the concept last year, and Mercedes released a few new specifics today regarding its powertrain.
In keeping with previous information we knew, the CLA is targeting extremely high efficiency of 12kWh/100km, which translates to just 193Wh/mi or 5.2mi/kWh. That’s more efficient than anything else on the road today – with Lucid’s Air Pure reaching 200Wh/mi, or 5mi/kWh. And just less than what Tesla is claiming the Cybercab will be capable of, at 5.5kWh/mi.
This is thanks to Mercedes’ new compact EDU 2.0 electric motor, which is part of its new Mercedes Modular Architecture (MMA) which will underpin its upcoming electric vehicles. The drive motor will be 200kW on the rear axle, though all-wheel drive models will be available with an additional 80kW unit on the front axle. A two-speed transmission will ensure efficiency at high speeds and low.
For more efficiency in cold weather, the CLA will use an air-to-air heat pump which is able to capture heat from the motor, battery, and ambient air to heat the cabin. While batteries and motors don’t make nearly as much waste heat as inefficient ICE engines, it’s still good to be able to channel heat to wherever you need it.
Mercedes says that the CLA will come equipped with a choice of two different batteries, each with different chemistries.
The larger 85kWh model will be capable of an unnecessarily-high 750km (466mi) of WLTP range – though WLTP numbers are always higher than EPA numbers, so expect something in the high-300s in EPA parlance. This battery will add silicon oxide to the anode for higher energy density, a technology that has been pioneered by Sila Nanotechnologies, a company which Mercedes is a lead investor in.
The smaller battery will be 58kWh, and will use lithium iron phosphate (LFP) chemistry. LFP is a cheaper but lower energy density technology, with higher long-term durability and simpler sourcing of minerals (it uses no cobalt, whereas Mercedes says cobalt has been “reduced” in the larger batteries). However, LFP generally has slower fast charging and cold weather performance.
On charging: the “premium” battery will have an 800V configuration capable of up to 320kW charging speeds. Mercedes says this can add 300km (186mi) of range in 10 minutes, and also says that the car will have a broad charging curve, which means you’ll get high charge rates even if the battery isn’t close to empty. It didn’t specify if the smaller LFP battery will have the same charge rate.
This high charging rate allowed Mercedes to set a record traveling 3,717km (2,309mi) in 24 hours at the Nardo test track in Italy in a pre-production CLA. That’s an average travel rate of 96mph – including time spent charging.
We also learned something about Mercedes’ NACS adoption plans. While just about everyone has committed to transitioning cars to NACS, it has taken longer than expected (largely due to Tesla’s chaotic CEO firing the whole supercharger team for little reason), and few cars have native NACS inlets yet. Some brands can already charge at Superchargers with adapters, but Mercedes is still on Tesla’s “coming soon” page.
As a result of delays in onbaording automakers, some seem to have pulled back on their plans, pushing NACS ports to later model years. But Mercedes has a new and unique solution – it will just put both CCS and NACS ports on the CLA, right on top of each other.
Mercedes says “in the future, new entry-level models will be capable of bidirectional charging,” but isn’t clear whether this model will be capable of that.
Electrek’s Take
While this is short of a full release of specs, we’re excited by what we see here. Mercedes seems to confirm that they’re meeting the efficiency goals they set out, and we like that they’re offering a variety of options and taking advantage of some newer EV tech like 800V charging infrastructure.
The inclusion of both NACS and CCS is very interesting, again offering options to owners during the transition. That seems to be the big message from Mercedes here – we’re not going to just pick one tool, we’re going to use all of them.
But pricing and availability are obviously big questions, as is design.
The concept looks fantastic, but concepts always change on their way into production. The shape of the camouflaged test vehicle is very different – but looks to have some shrouding on the front and back to hide its shape, so we’ll have to wait until we see this thing unveiled for more.
And as for pricing – Mercedes says the CLA will be an “entry-level” car, but who knows what that means anymore these days. The base ICE CLA starts at around $44k currently, so lets see if they can hit that number.
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Daimler Truck North America has helped alcohol distributor Reyes Beverage Group deploy fully 29 zero-emission Freightliner eCascadia Class 8 electric semi trucks in its California delivery fleet.
Reyes Beverage Group (RGB) plans to deploy the first twenty Freightliner electric semi trucks at its Golden Brands – East Bay and Harbor Distributing – Huntington Beach warehouses, marking the first phase in the company’s transition to a fully zero emission truck fleet by 2039. An additional nine eCascadia Class 8 HDEVs are scheduled for delivery to RBG’s Gate City Beverage – San Bernardino warehouse before the end of 2024.
RBG’s decision to adopt the Freightliner eCascadia builds on its recent transition to renewable diesel and its ongoing idle-time reduction program. These electric vehicles (EVs) “go electric” will contribute significantly toward the company’s stated goal of reducing its carbon emissions 60 percent by 2030. These 2 trucks will save some 98,000 gallons of diesel fuel annually, and avoid putting nearly 700 metric tons of carbon dioxide and other harmful emissions into California’s air each year.
“We are excited to be among the first in our industry to adopt these electric vehicles,” explains Tom Reyes, President of RBG West. “This is a significant step toward our sustainability goals and ensuring compliance with state regulation as we transition our fleet to EV.”
Freightliner’s eCascadia electric semi trucks offer a number of battery and drive axle configurations with ranges between 155 and 230 miles, depending on the truck specification, to perfectly match customers’ needs without compromising on performance and load capacity. RBG’s Freightliner eCascadia tractors will rely on electric charging stations installed at each facility, allowing them to recharge to 80% capacity in as little as 90 minutes for RGB’s trucks, which feature a typical driving range of 220 miles as equipped.