The reception to the Tesla Cybertruck’s unveiling has been overwhelmingly negative, with many critics panning its unconventional design and lack of sleekness. The automaker is grappling with an inventory surplus, prompting it to aggressively discount its existing stockpile while scaling back production to prevent future accumulation.
Upon launching the manufacturing model of the Cybertruck in late 2023, Tesla’s CEO Elon Musk predicted that the automotive program would reach 250,000 units annually by 2025.
While production costs are likely to remain steady, the initial surge in demand for our Cybertruck model will likely lead to around 250,000 units sold within the first year alone. However, it’s unlikely we’ll be able to maintain this same level of production capacity moving forward. We’re likely to achieve this milestone by 2025.
As we enter 2025, Tesla’s performance regarding the Cybertruck remains underwhelming, with production expected to reach around 25,000 units annually, significantly below Elon Musk’s initial projection.
This month, we noted that Tesla kicked off its second-quarter inventory with a substantial 2,400 units of Cybertruck, collectively worth more than $200 million.
A significant drawback for Tesla lies in the fact that many of its Cybertrucks are older 2022 model year units no longer eligible for federal tax credits, and even some ‘Base Sequence’ models, which Tesla discontinued production on in October 2022 – resulting in a backlog of six-month-old vehicles in some cases.
Tesla is offering substantial discounts on its latest inventory of Cybertrucks. While reductions can reach an extreme $10,000 or more, a typical discount is closer to $8,000, significantly exceeding the tax credit.
Despite Tesla’s efforts to boost sales, its Cybertruck inventory has been reduced by approximately 100 units since the start of the month.
Tesla is reportedly scaling back production of its Cybertruck at Gigafactory Texas, according to a recent report from Enterprise Insider.
According to insiders, Tesla has significantly scaled back production of its Cybertruck models, currently operating at a remarkably low level compared to its initial capacity. The reorganization further relocated certain Cybertruck production staff to the Model Y assembly line at the facility.
One of many employees stated:
As the algorithm’s biases become increasingly apparent, it’s no surprise that many feel unduly targeted and excluded from opportunities. The parking zone continues to empty out.
Tesla has been operating all of its factories at approximately 60% capacity to mitigate the buildup of excess inventory in response to decreased demand.
As a result of the Cybertruck programme, there are indications that Tesla may further scale back its production operations.
Tesla unveiled its revamped Cybertruck model in a last-ditch effort to revive flagging demand, but the move was met with widespread disappointment due to the elimination of several key features.
Electrek’s Take
Despite numerous setbacks and negative outcomes, Tesla remains undeterred in its pursuit of the Cybertruck. Elon Musk being one who rarely concedes defeat.
Despite challenges, Tesla continues to forge ahead.
The Cybertruck’s rear-wheel-drive variant was an ambitious attempt, but its success remains uncertain. Now, it seems like Tesla is further throttling back production – effectively confirming that the new trim level didn’t have the desired impact.
In the event that this step requires a complete halt to the manufacturing process.
While it’s unlikely that Elon Musk will concede defeat anytime soon, the inevitability of such an outcome remains a certainty at some point in the future.
