Tesla, Inc. has been struggling with declining sales, and as a result, the company is slowing down its Cybertruck production. This decision comes after a significant drop in sales, with the company selling only 6,406 Cybertrucks in the first quarter of 2025, which is a 50% decline from the previous quarter.
What’s Happening
Over the past few months, Tesla has been reducing its production targets for several Cybertruck lines, with some operating at a significantly reduced capacity. The size of several Cybertruck production teams has also been cut down, and workers are being reassigned to other production lines, such as the Model Y line at the Gigafactory Texas. A worker commented, “It feels a lot like they’re filtering people out. The parking lot keeps getting emptier.”
Sales Figures
The decline in Cybertruck sales is not an isolated issue, as Tesla’s overall sales have also been declining. In the first quarter of 2025, the company delivered 13% fewer vehicles than in the same period in 2024. This decline coincides with increasing competition, protests outside showrooms, and a 40% drop in stock value year-to-date. To make matters worse, the company has delivered fewer than 50,000 Cybertrucks to date, despite Elon Musk’s initial claim of over a million reservations.
Recall and Safety Concerns
In March, Tesla announced the recall of over 46,000 Cybertrucks in the U.S. due to a safety issue related to the exterior panel. This recall has further eroded trust in the vehicle, which has been plagued by quality issues and sticker shock from the base model’s price.
Inventory and Demand
Tesla is reportedly sitting on nearly 2,400 unsold Cybertrucks worth $200 million in inventory across the U.S. This raises questions about demand for the vehicle, which has been considered one of the biggest automotive flops in decades. Experts have noted that the vehicle has fallen short of Musk’s ambitious sales target by a whopping 84%, with no signs of recovery in sight.
Conclusion
Tesla’s decision to slow down Cybertruck production is a clear indication of the company’s struggles with declining sales and increasing competition. As the company navigates these challenges, it remains to be seen whether the Cybertruck can recover from its current slump and meet the expectations of its investors and customers.