Tesla’s Cybertruck has done something few modern cars can do: become one of the most recognizable vehicles on the road. But Tesla has a serious problem: The boxy electric pickup isn’t selling in the volumes the company had hoped for.
Image source: Tesla
According to a source, Tesla has about 2,400 Cybertruck pickups worth $200 million in its U.S. warehouses because the company is having trouble selling them. This has forced Tesla to cut production, but the decline in sales is not the only problem. Numerous recalls of electric vehicles due to defects, Tesla’s refusal to accept the Cybertruck as a trade-in, a drop in stock prices, and mass protests against the automaker itself have led to Elon Musk’s company finding itself in a difficult situation.
With a starting price of $82,235, Cybertruck sales were far below the automaker’s expectations. Musk had previously announced his intention to sell up to 250,000 pickups per year. However, only 40,000 Cybertrucks were sold in the first full year of sales, which is slightly below the billionaire’s expectations. In anticipation of high sales, Tesla even upgraded its Austin plant, and it appears that these expenses are unlikely to pay off.
Tesla reported deliveries of 336,881 vehicles worldwide in the first quarter, up from 387,000 in the same period last year. Tesla recently recalled 46,000 Cybertrucks due to poorly secured trim that could come off during use. The issue affected nearly every truck produced to date and raised even more questions for the automaker after a previous recall related to technical issues.
The Cybertruck was Tesla’s attempt to do something that many other automakers have not dared to do. However, the basic design of pickup trucks has remained unchanged for about 100 years for a reason — it is ideal for transporting large loads, including off-road, which the Cybertruck has not succeeded in. According to Cox Automotive, Cybertruck sales in the U.S. fell by 32.5% in January and February, to just 2,619 units. This drop coincided with an overall decline: during the same period, Tesla sales in the U.S. fell by 10%, and sales of the Model 3 sedan fell by 17.5%.
Tesla’s struggles also include Musk’s changing public image and widespread protests against the automaker. Tesla’s struggles also include Musk’s changing public image and widespread protests against the automaker. Even without all the hype, the Cybertruck is a niche product with a limited market. Despite all this, the Cybertruck was the best-selling electric pickup truck in the U.S. last year. Tesla may yet be able to turn things around and increase Cybertruck sales.