Tesla's Cybertruck significantly discounted and production cut - Media
Kyiv • UNN
Tesla has accumulated thousands of unsold Cybertrucks and is sharply reducing production. The company is discounting old stock with discounts of up to $10,000, as sales significantly lag behind plans.
Tesla's Cybertruck is experiencing a crisis. The automaker is still sitting on a ton of old inventory that it is now heavily discounting, and is reducing production to try and avoid accumulating even more inventory, Electrek reports, writes UNN.
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When launching the production version of the Cybertruck in late 2023, Tesla CEO Elon Musk stated that the vehicle production program would reach 250,000 units per year in 2025: "I think we'll get roughly a quarter million Cybertrucks a year, but I don't think we'll reach that production rate next year. I think we'll probably reach it sometime in 2025."
It is now 2025, and Tesla is currently expected to sell the Cybertruck at a rate of about 25,000 units per year – a tenth of what Musk predicted, the publication notes.
According to the publication, Tesla started the second quarter with 2400 Cybertrucks in inventory, valued at over $200 million.
"This is a real problem for Tesla, as many of these Cybertrucks are older 2024 models that do not qualify for the federal tax credit, and even some "Foundation Series" models, which Tesla stopped producing in October 2024, - meaning that in some cases Tesla is using 6-month-old pickup trucks," - writes the publication.
Now, as noted, Tesla is offering more substantial discounts on new Cybertrucks. Discounts can reach $10,000, but the average is around $8,000, which is more than the tax credit, the publication notes.
Despite Tesla's efforts, the automaker, as noted, has reduced its Cybertruck inventory by only 100 units since the beginning of the month.
According to a new report by Business Insider, Tesla is now further reducing Cybertruck production at Gigafactory Texas. According to two Tesla workers who spoke with BI, the automaker has cut its Cybertruck production teams and is now operating at only a fraction of its initial capacity. It has also moved some Cybertruck workers to Model Y production at the plant.
Tesla is reportedly operating all its plants at approximately 60% capacity to avoid accumulating excess inventory amid declining demand.
As for the Cybertruck program, it appears Tesla is further reducing production, the publication writes.
Last week, Tesla launched a new version of the Cybertruck in an attempt to boost demand, but it was poorly received due to the automaker removing many important features.
