Image Courtesy: Tesla
Tesla is requiring buyers of its limited Signature Edition versions of the Tesla Model S and Tesla Model X to sign a strict no-resale agreement, introducing financial penalties for those who attempt to sell their vehicles within the first year of ownership.
The agreement, shared by an invited buyer, states that owners who violate the restriction could face liquidated damages of $50,000 or the full resale value of the vehicle, whichever is greater. The policy marks a return to Tesla’s earlier anti-resale strategy used during the Cybertruck launch, according to Electrek.
Under the terms, buyers are prohibited from selling or attempting to sell the vehicle within 12 months of delivery. If a sale becomes necessary, the owner must first offer the vehicle back to Tesla, which has the option to repurchase it at the original price with deductions for mileage, wear, and refurbishment costs. Only if Tesla declines and provides written consent can the owner proceed with a third-party sale.
The agreement also allows Tesla to take legal action to block unauthorized transfers and to deny future purchases to customers who breach the terms. The company can act not only in confirmed violations but also if it believes a breach is likely.
The Signature Edition models are being released in limited numbers as part of the planned discontinuation of both vehicles after more than a decade in production. Tesla is producing 250 units of the Model S and 100 units of the Model X in this configuration, each featuring exclusive design elements and bundled premium features.
Priced at $159,420, the vehicles include Full Self-Driving capability, lifetime Supercharging, extended service coverage, and connectivity features. The limited production and invite-only access have raised expectations of strong demand in the secondary market, which the resale restrictions appear designed to limit.
Tesla previously implemented a similar clause for early Tesla Cybertruck buyers. That policy was introduced, removed, and later reinstated before being phased out as supply increased and resale premiums declined. While the company reserved the right to enforce penalties, there were no confirmed cases of financial penalties being applied.
In contrast, the fixed and limited production of the Signature Edition models may sustain higher resale values over time, making enforcement of such agreements more relevant. However, questions remain about how such clauses would be applied in practice.
The move reflects ongoing efforts by automakers to manage demand, brand positioning, and pricing stability in the secondary market for limited-release vehicles.
