Tesla's futuristic Cybertruck is facing a harsh reality check as the company scales back production and offers significant incentives to boost lagging sales. The much-hyped electric pickup truck, once projected to be a game-changer for Tesla, is now being compared to historic automotive failures as inventory builds up and consumer interest wanes.
Production Cutbacks Signal Trouble
Tesla has reportedly begun scaling down its Cybertruck production goals in recent months, according to Business Insider's sources. The company has thinned out some Cybertruck production lines at its Texas Gigafactory—with some teams reportedly reduced by more than half. Workers are being reassigned to Model Y production lines, a move that began as early as December when Tesla surveyed employees about their preferred work assignments. One employee noted that the parking lot keeps getting emptier, suggesting a significant reduction in the workforce dedicated to Cybertruck manufacturing.
Sales Numbers Tell a Grim Story
The production cuts come amid alarming sales figures. Cybertruck deliveries fell dramatically in the first quarter of 2025, with only 6,406 units sold compared to 12,991 in the previous quarter, according to Cox Automotive data. Since production began in late 2023, Tesla has sold just over 46,000 Cybertrucks—far below CEO Elon Musk's ambitious prediction of 250,000 units annually. This sales slump is part of Tesla's broader challenges, with overall company sales declining 13% in the first quarter of 2025.
Cybertruck Sales Decline
- Q1 2025: 6,406 units sold
- Previous quarter: 12,991 units sold
- Total since launch: ~46,000 units
- Original annual sales target: 250,000 units
- Revised 2025 delivery estimate: 20,000 units
Price Reductions and Incentives
- US discounts: Up to USD $11,900
- Canadian discounts: Up to CAD $16,590
- Additional perks: Lifetime free Supercharging (Foundation Series), Lifetime Full Self-Driving access
- New budget model: USD $70,000 (USD $10,000 less than standard model)
Quality Issues
- 8 recalls in 15 months of production
- Recent recall: All Cybertrucks (side panel issues)
- Additional recall: 375,000 vehicles (steering issues)
Desperate Measures to Move Inventory
As inventory piles up, Tesla has implemented aggressive tactics to entice buyers. The company is offering discounts of up to USD $11,900 on many Cybertruck models in the United States, while Canadian buyers are seeing reductions of up to CAD $16,590. Beyond price cuts, Tesla is sweetening deals with lifetime free Supercharging for customers who purchase the premium Foundation Series Cybertruck (priced at USD $95,000) and lifetime access to the company's Full Self-Driving technology, which typically requires a monthly subscription.
New Budget Model Fails to Impress
Last week, Tesla unveiled a cheaper Cybertruck variant priced at approximately USD $70,000—about USD $10,000 less than the standard model. However, the cost savings come with significant compromises: the new version switches from all-wheel to rear-wheel drive and eliminates premium features like air suspension and vegan leather seats. Investors remain skeptical that this stripped-down model will meaningfully boost sales. Gary Black, a Tesla investor and managing partner of the Future Fund, estimates Tesla will deliver just 20,000 Cybertruck units in fiscal 2025, down from 37,000 in fiscal 2024.
Quality Issues and Recalls Plague the Model
The Cybertruck's reputation has been further damaged by quality control problems. Last month, Tesla halted deliveries over concerns that the vehicle's side paneling was falling off, leading to a recall of every Cybertruck ever sold. This was just one of eight recalls in about 15 months of production. In February, the company recalled an additional 375,000 vehicles due to a steering issue, further eroding consumer confidence.
The DeLorean Parallel
Industry observers are drawing comparisons between the Cybertruck and the infamous DeLorean DMC from the early 1980s. Despite being separated by almost five decades, both vehicles shared initial public fascination due to their unconventional styling, followed by production issues, quality concerns, and controversies surrounding their creators. Like the DeLorean, the Cybertruck appears to have had its moment in the spotlight before facing a rapid decline in demand.
Musk's Divided Attention
Some analysts attribute Tesla's struggles partly to Elon Musk's divided attention. Since taking on responsibilities within President Donald Trump's administration as part of the Department of Government Efficiency (DOGE), Musk has faced criticism that his focus has shifted away from Tesla's operations. This perception has reportedly contributed to declining investor confidence, with Tesla's stock dropping 43% since Trump's inauguration, though shares remain up 54% over the past 12 months.
Future Outlook
Despite these challenges, Musk remains publicly optimistic about Tesla's future, pledging last month to double car production in the U.S. over the next two years. However, the Cybertruck's trajectory suggests that Tesla may need to reconsider its strategy for this particular model. As one industry publication bluntly put it, the Cybertruck has become the auto industry's biggest flop in decades, potentially joining the ranks of notorious failures like the Ford Edsel and Pontiac Aztek.