Tesla Inc is facing a sales slump with its premium Foundation Series Cybertrucks lingering unsold in the US inventory. The company’s inventory shows multiple new Foundation Series Cybertrucks listed, including the all-wheel drive variant and the Cyberbeast variant. Despite its strong order book, the company’s production and pricing strategy appears to be a major challenge.
What’s Happening?
Multiple new Foundation Series Cybertrucks are listed in the US inventory, with prices ranging from $99,990 for the all-wheel drive variant to $119,990 for the Cyberbeast variant. Many of these listed vehicles come with premium connectivity and full self-driving driver assistance technology.
Features and Pricing:
- Foundation Series all-wheel drive variant: $99,990
- Cyberbeast variant: $119,990
- Premium connectivity
- Full self-driving driver assistance technology
The Foundation Series
The Foundation Series refers to a limited and pricier edition of the Cybertruck with laser-etched Foundation Series badges and premium accessories. Tesla made only the Foundation Series Cybertrucks for the first few months of deliveries, implying significant demand challenges for the truck.
Market Impact
Tesla started delivering the Cybertruck to customers in the US in November 2023. Despite initial strong pre-orders, the company has faced significant demand challenges, partly due to the high pricing of the vehicle at the time of delivery. The vehicle’s price was significantly higher than estimated, deterring reservation holders from making the purchase.
Sales Performance
According to data from Kelley Blue Book, Tesla sold 16,692 Cybertrucks in the third quarter in the US, trumping EV trucks from rivals. However, the company had bigger ambitions for the Cybertruck, aiming to make up to 250,000 Cybertrucks in 2025.
Production Pause
Early in December, Tesla told its workers on the Cybertruck production line at Giga Texas that they need not report to work for three days, implying a pause in production. This pause highlights the challenges faced by the company in meeting its production goals.
Conclusion
Tesla’s sales slump with its premium Foundation Series Cybertrucks raises concerns about the company’s production and pricing strategy. Despite initial strong pre-orders, the company has faced significant demand challenges, partly due to high pricing. Will the company be able to overcome these challenges and meet its production goals? Only time will tell.