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Remember the hype surrounding Tesla’s Cybertruck and Elon Musk’s claims of a million pre-orders? The reality seems to be painting a different picture. With an estimated 50,000 Cybertrucks already delivered, Tesla is now reportedly offering significant discounts, up to $10,000, on existing inventory, signaling a potential slowdown in demand.
These discounts primarily apply to demo models and older Cybertrucks produced before the vehicle qualified for federal tax credits. While an $8,000 or $10,000 price cut may seem enticing, it’s crucial to consider that even with the discount, these older models might not be a better deal than a brand-new Cybertruck All-Wheel Drive, especially after factoring in the federal tax credit, which brings its starting price down to around $74,735. And the upcoming Long Range, rear-wheel-drive version is expected to be even more affordable, hovering around $64,000.
Plenty of Cybertrucks are reportedly available in inventory.
Adding to the intrigue, reports indicate that some discounted Cybertrucks are from the “Foundation Series,” the initial launch edition, which Tesla supposedly ceased manufacturing in October. This suggests a substantial number of these flagship EVs remain unsold.
Considering Tesla’s previously stated goal of producing up to 120,000 Cybertrucks annually, the current situation points to a significant mismatch between supply and demand. This has already led to incentives like free lifetime Supercharging being offered on what was initially marketed as a highly desirable product.
While the Cybertruck undeniably holds a unique position, outperforming other electric pickup trucks in sales last year, and Tesla continues to dominate the EV market with the Model Y and Model 3, the situation highlights potential challenges. The aging Model S and Model X, coupled with the Cybertruck’s apparent struggle to maintain its initial momentum, raise questions about Tesla’s long-term strategy.
Furthermore, Elon Musk’s increasingly controversial public persona might be impacting the Tesla brand. The Cybertruck’s polarizing design, combined with quality concerns and limitations in traditional “truck stuff,” could be deterring potential buyers from both the EV and traditional truck segments.
Despite these challenges, Musk has increasingly emphasized Tesla’s future as an AI company, potentially shifting focus away from solely being a car manufacturer. However, this transition relies heavily on the financial strength of its core automotive business. The Cybertruck’s current situation, coupled with increasing incentives across Tesla’s lineup, suggests that maintaining this financial engine may prove more difficult than anticipated.