Tesla Blacklist

[Rishabh0428]

So I run a Turo business where I rent out Teslas. I buy many Teslas, and most of my renters end up buying my cars.

I got an email from Tesla today saying "Loss prevention team has informed me that we will have to black list you from further purchases. As it turns out, reselling vehicles is against the order agreement. Please note that this decision is final and we will be cancelling all pending orders."

Has anyone else ever experienced or heard of this?

 

[jjrandorin]

You mean this text, in the MVPA that you agree to every time you buy a tesla?

https://www.tesla.com/order/download-order-agreement?country=US

"I buy many teslas, and sell these teslas to other people "( regardless of the reason ) = reseller... At least to anyone who would look at it who is not involved in it. Whether its turo vehicles or whatever else, you are a reseller.

Edit:

OP, if your business is actually a "Turo Business" and not a "Tesla Turo Business where I make money reselling teslas" then you shouldnt have much issue in simply substituting in another brand of vehicle and continuing on with your business.

 

[stock1232]

How many Teslas did you end up reselling? I also do Turo and I have 4 Teslas that I'm thinking to sell and upgrade to 2022's Model S/X/Y. I would be pissed if Teslas ended up cancelling my reservations because I want to upgrade my fleet.

 

[Rishabh0428]

I have about 19 Teslas. I sold about 5 of them because the market slowed down like crazy.

 

[Rishabh0428]

Plus it sucks they dont give some sort of warning or anything.

 

[jmaddr]

My thoughts....
What's your average buy/sell delta time and mileage? They are trying to avoid people becoming "like" dealers (scalpers if you will), flipping vehicles quickly after purchase...which I get but there should be some leeway for entrepreneurial people like yourself. Heck, there is some new precedent towards doing what you are doing.....look at the recent Hertz headlines. A few companies do something like this today, so it's not unheard of. Ferrari is famous for similar and Ford did it for the GT, though their rules were time-bound.

 

[EVNow]

I have about 19 Teslas. I sold about 5 of them because the market slowed down like crazy.

Contact Tesla and explain - if you did all this in good faith. May be tweet to Elon.

If the difference between buying and selling is substantial - Tesla should be fine with that.

 

[Rishabh0428]

I spoke to them and they wont give me a straight reason. They just said they "determined" I am a reseller and are banning me.

Im not really doing anything diff than Hertz. Its kinda ridiculous that they (my sales rep or the delivery center) never gave ma a warning. They just kept selling me cars; and knew exactly about the Turo thing.

I get it, I overlooked the T&C's and sure it says I cant resell my car, but its pretty loose on how its written. Based on that no one can really sell their car. I am buying those cars on my personal name paid off cash.

Tesla wont even comment on this or give me any further explanation.

 

[S4WRXTTCS]

What length of time was there between when you bought the vehicles, and sold them?

I ask out of curiosity of the timeline.

If more than 6+ months passed of ownership I wouldn't call that buying for reselling.

 

[Rishabh0428]

I ordered 3 cars and sold two of them right away within a couple of months because business was crazy slow and they weren’t renting.

 

[ArchEtech]

Buy lightly used Teslas as the second owner from 3rd parties. Sounds to me like you’re clearly in the edge of being a dealer in Teslas eyes or something.

 

[Rishabh0428]

Buy lightly used Teslas as the second owner from 3rd parties. Sounds to me like you’re clearly in the edge of being a dealer in Teslas eyes or something.

Yea that’s the thing. They banned me for life and are not letting me appeal the decision or gave me a warning or anything.

Furthermore the Tesla dealership and rep and his manager knew exactly about the Turo thing and encouraged me to buy more cars and kept selling them to me. No one told me this would happen. Yes it’s my fault I didn’t read the fine print. :/

 

[ArchEtech]

Still seems like an overreach considering they are staring to allow Teslas to be used as rentals. What happens when Hertz sells their Tesla fleet?

 

[Rishabh0428]

Still seems like an overreach considering they are staring to allow Teslas to be used as rentals. What happens when Hertz sells their Tesla fleet?

Thats what I told them, but they kept saying decision is final. I wonder if anyone else has encountered this

 

[brkaus]

Had you sold the older cars, it likely would not be a concern.

I still don’t think it’s fair.

 

[Rishabh0428]

Had you sold the older cars, it likely would not be a concern.

I still don’t think it’s fair.

I have! Usually I only keep the cars for a few months because they get damaged, smoked in, or a renter buys them. I get it and accecpt the resell thing and shouldn't have done it, but it was pure ignorance. What upsets me more is that the Sales Managers, Sales Center, and Sales rep knew exactly what I was doing, but didnt warn me or anything. They kept letting me buy the cars. I wish they would have warned me because I honestly would have done any of this. They canceled all my pending orders even my personal car and blocked me from buying any Tesla from Tesla direct. No warning was given or even a phone call. It was basically an email and said decision is final and it is what it is.

 

[HankLloydRight]

Create an LLC in your state and start buying cars through that. Use you wife’s name as a principal if you’re married or a sibling or friend. Or hire a lawyer to buy cars as a proxy.

 

[Rishabh0428]

Create an LLC in your state and start buying cars through that. Use you wife’s name as a principal if you’re married or a sibling or friend. Or hire a lawyer to buy cars as a proxy.

They said I am not allowed to buy cars. You think the LLC way will work?

 

[swiftd03]

They said I am not allowed to buy cars. You think the LLC way will work?

Yeah, you would not be buying the car. The company would.

 

[Rishabh0428]

Yeah, you would not be buying the car. The company would.

Im not sure if that would work...