Tesla’s Cybertruck vehicles are piling up outside the company’s gigafactory in Texas, with inventory levels higher than expected due to lower-than-expected sales. The company is now offering significant discounts on its model year 2024 vehicles, with up to $6,000 off the foundation series Cybertrucks and $4,000 off non-foundation series models.
Background
The Cybertruck is one of Tesla’s premium offerings, starting at $79,990 for the base all-wheel drive variant and $99,990 for the more premium Cyberbeast variant. Despite its high price point, the vehicle was Tesla’s third best-selling model in the US in 2024, with 38,965 units sold. However, this is significantly lower than the company’s expected delivery volume.
Production Targets
Tesla CEO Elon Musk has stated that the company aims to produce 250,000 Cybertrucks per year in 2025. However, given the current weak demand, this target appears unlikely to be met. Researcher Troy Teslike expects the company to sell only 21,000 Cybertrucks in 2025, a significant decrease from the previous year.
Analyst Insights
Troy Teslike notes that the order backlog for the Cybertruck is gone, with 10,600 unsold vehicles left over from 2024 due to overproduction and low demand. He also dismisses the possibility of a cheaper Cybertruck variant being launched this year, stating that the current model is not profitable and a cheaper version would only exacerbate the issue.
History of the Cybertruck
Tesla began delivering the Cybertruck in the US four years after its unveiling in November 2019. Initially, only the limited edition foundation series was available, priced nearly $20,000 more than the non-foundation series. The non-foundation series Cybertrucks did not become available until the fourth quarter of 2024.
Conclusion
The Cybertruck’s slow sales and high inventory levels are a significant concern for Tesla, and the company will need to reassess its production targets and pricing strategy to stimulate demand. With the current discounts and lack of a cheaper variant, it remains to be seen how the company will address the issue and meet its production goals.