The Tesla Cybertruck has done what very few modern-day vehicles have been able to achieve – become one of the most recognizable cars on the road. However, Tesla has a major issue on its hands: Its angular electric pickup isn't selling in the numbers it had hoped for.
Tesla has about US$200 million worth of these vehicles in stock in the US – which translates to around 2,400 Cybertrucks – as the company is having trouble moving units.
This has caused Tesla to scale down production in order to control the growing inventory. But declining sales is not Tesla’s only worry. Numerous recalls, Tesla’s refusal to accept Cybertrucks as trade-ins, plummeting stock prices, and mass protests against the company itself have led to a tricky situation for Elon Musk’s company.
With a starting price of $82,235, sales of the 6,600-lb (3,000-kg) truck have fallen far short of what the carmaker had predicted after just over a year on the market. Musk estimated the Cybertruck could sell up to 250,000 units a year. In 2024, its first full year of sales, Tesla sold just under 40,000 units – a slight shortfall on Musk's estimate.
Tesla even upgraded its Austin Gigafactory to build up to 250,000 Cybertrucks annually in expectation of strong sales. This is an expenditure that is unlikely to be recovered. The result? Tesla's not just hurt, it's bleeding.
Across its entire range, Tesla reported 336,681 worldwide deliveries in the January–March quarter compared to sales of 387,000 over the same time period last year. And this was despite deep discounts, zero financing, and other incentives.
A recent recall by Tesla affected more than 46,000 Cybertrucks – nearly all of the company's vehicles to date – owing to loose trim pieces that might come off while being driven. This raises more questions, considering it comes after an earlier recall involving the accelerator pedal.
“I do zero market research whatsoever,” Musk has said, an admission that sounds comical in the wake of the Cybertruck sales slump. He also said, “Pickup trucks have been the same for 100 years,” and the Cybertruck “doesn’t look like anything else.”
The Cybertruck is indeed a valiant effort in doing something new, and that’s not what most manufacturers dare to do. But there's a reason the basic design of pickups hasn't changed in 100 years – it's perfect for what buyers want it for, i.e., carrying a big load and being able to do so in rough conditions. Two things the Cybertruck doesn't exactly excel at.
And with existing owners reporting issues with their Cybertrucks, used prices of the vehicle have also fallen 55% year over year. As a result, current owners are unable to swap their vehicles for newer models because Tesla is currently reluctant to accept Cybertrucks as a trade-in for even for its own vehicles.
Per Cox Automotive, during January and February, U.S. Cybertruck sales fell by 32.5% to just 2,619 units. This decline in sales has been in tandem with Tesla's general downturn. Over the same time period, the company's U.S. sales decreased by 10%, with the Model 3 sedan seeing a 17.5% dip.
Tesla’s difficulties are also attributed to the Musk’s changing public image and the widespread protests against the automaker. But even if you ignore the noise, the truth is the Cybertruck is a niche product with a small market.
But all is not doom and gloom for the American carmaker. With an estimated 39,000 units sold, the Cybertruck ended 2024 as America's best-selling electric truck despite its recent difficulties. There might just be a bounce back if Tesla can successfully implement a mid-cycle update.
Remember Musk and von Holzhausen's demonstration of the Cybertruck's not-so-shatterproof shatter-proof "armor" glass to boisterous Tesla fans in Los Angeles in November 2019? Despite that embarrassment, Musk and co managed to persevere. Tesla loyalists would be hoping to see more of the same this time around.
Sources: Cox Automotive, TeslaInfo
