The Tesla Cybertruck is facing a crisis as the automaker struggles with excess inventory and slowing production. Despite Elon Musk’s initial projection of reaching 250,000 units per year by 2025, Tesla is currently only selling around 25,000 Cybertrucks annually – a far cry from the promised numbers.
At the start of the second quarter, Tesla had a significant inventory of over 2,400 Cybertrucks, valued at over $200 million. The problem lies in the fact that many of these trucks are older models that are no longer eligible for federal tax credits, further complicating sales.
To combat this issue, Tesla has resorted to offering steep discounts on new Cybertruck inventory, with some discounts reaching up to $10,000. Despite these efforts, the automaker has only managed to reduce inventory by about 100 units so far.
In a bid to prevent further accumulation of inventory, Tesla has decided to throttle down production of the Cybertruck at Gigafactory Texas. Production teams have been reduced, and some workers have been reassigned to Model Y production at the plant. This move indicates that Tesla is operating at a fraction of its original capacity and is taking steps to address the current sales slump.
The introduction of a new version of the Cybertruck, known as the Cybertruck RWD, was an attempt to boost demand. However, this new trim has been met with criticism due to the removal of essential features, leading to doubts about its effectiveness in increasing sales.
As Tesla continues to navigate the challenges surrounding the Cybertruck program, it remains to be seen how the automaker will address the ongoing issues. With production being further reduced and sales not meeting expectations, the future of the Cybertruck hangs in the balance. Despite Elon Musk’s reluctance to admit defeat, the possibility of a complete production pause looms as a potential next step in resolving the current crisis.
