Tesla is requiring buyers of its "farewell edition" Model S and Model X Signature series vehicles to sign a strict non-resale agreement, with violations subject to fines of at least $50,000. The electric vehicle manufacturer announced last week that it would produce limited quantities of these models as a final tribute before discontinuing them this year.
According to electric vehicle news outlet Electrek, prospective purchasers must agree to terms restricting vehicle resale within the first year of ownership. The agreement prohibits buyers from selling or attempting to sell their vehicles within 12 months of delivery without Tesla's authorization.
Should owners need to sell due to unforeseen circumstances, they must first notify Tesla in writing and grant the company right of first refusal. Tesla stated it would repurchase vehicles at original purchase price, deducting $0.25 per mile driven plus vehicle reconditioning costs.
If Tesla declines to repurchase, owners may potentially sell to third parties but must obtain written approval from Tesla beforehand.
Breaching the agreement carries significant consequences. Tesla may require violators to pay $50,000 in liquidated damages or the resale price, whichever is higher. The company also warned that violators could be barred from future Tesla purchases.
Tesla began sending email invitations for these limited-edition vehicles to customers last week. Production will be limited to 250 Model S and 100 Model X Signature units, all featuring pomegranate red paint with gold accents and white interiors.
Both models carry a price tag of $159,420 and include Tesla's premium package featuring Full Self-Driving (Supervised) capability and lifetime supercharging services.
The farewell editions follow Tesla CEO Elon Musk's January announcement to investors that the company would discontinue Model S and Model X production this year. Musk stated during an earnings call, "We expect to phase out Model S and Model X production next quarter and ultimately cease manufacturing. While somewhat regrettable, it's time to conclude the Model S and Model X programs as part of our transition toward an autonomous future."
This move appears part of Tesla's broader strategy to free up space at its Fremont, California factory for robotics manufacturing initiatives.
Such resale restrictions are not uncommon in the ultra-luxury and collector vehicle segments. This isn't Tesla's first attempt to combat resale speculation. Electrek noted that Tesla implemented similar terms during Cybertruck's initial launch, prohibiting early owners from reselling vehicles. The company faced backlash and temporarily withdrew the policy before reinstating it weeks later. The restriction was ultimately removed in 2024 as supply caught up with demand.
Although Tesla has never publicly enforced the $50,000 penalty, some Cybertruck owners reported being blacklisted from future vehicle purchases according to Electrek. Whether Tesla will enforce the current agreement remains to be seen.
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