Tesla requires buyers of its "farewell" Model S and Model X Signature Editions to sign a strict no-resale agreement, with violators facing fines of at least $50,000. The electric carmaker announced last week that it would produce the models in limited quantities as a farewell before production is halted this year.
According to electric vehicle news website Electrek, anyone who wants to buy either electric car will have to agree to terms that limit the resale of the vehicle within the first year of purchase. Under the agreement, buyers are prohibited from selling or attempting to sell the vehicle for 12 months from the date of delivery without approval from Tesla.
If the owner needs to sell the vehicle due to unforeseen reasons, he must first notify Tesla in writing and give Tesla the right to repurchase the vehicle. Tesla said it will buy back the vehicles at their original price, minus a $0.25 per mile fee and the cost of refurbishing the vehicles.
If Tesla refuses to repurchase the vehicle, the owner may still be able to sell it to a third party, but only with Tesla's prior written approval.
Breaching an agreement can be costly. Tesla said it may require owners to pay $50,000 in liquidated damages or the resale price, whichever is higher. The company also warned that any owners who violate the agreement may be banned from purchasing Tesla vehicles in the future.
IGN senior executive editor Ryan McCaffrey posted on X last week that Tesla began sending email invitations to customers for these two limited-edition models last week. McCaffrey wrote that Tesla will only produce 250 Model S and 100 Model X Signature Editions, all in garnet red paint with gold trim and white interiors.
Both models are priced at $159,420 and come with the Tesla Luxury Package, which includes FSD (Supervisory Edition) and lifetime Supercharging service.
Previously, Tesla CEO Elon Musk announced to investors in January this year that the company would discontinue production of Model S and Model X this year, and then released these two farewell models.
Musk said on the conference call: "We expect to phase out production of Model S and Model X next quarter and eventually cease production. This is somewhat regrettable, but now is the time to end the Model S and Model
The move appears to be part of a broader move by Tesla to free up space at its Fremont, Calif., factory to advance its robotic manufacturing plans.
Such resale restrictions are not uncommon in the world of ultra-luxury and collector cars. This isn't the first time Tesla has tried to crack down on reselling, either.
Electrek points out that Tesla introduced similar clauses when it first launched the Cybertruck, prohibiting early owners from reselling their vehicles. The company quickly faced backlash and briefly withdrew the policy, only to reimpose it weeks later. The restriction was eventually lifted in 2024 as supply caught up with demand.
Although Tesla has never publicly enforced the $50,000 fine, Electrek reported that some Cybertruck owners reported that they were blacklisted from purchasing future vehicles.
It remains to be seen whether Tesla will actually implement the agreement this time.
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