Tesla appears to be facing significant challenges with its Cybertruck program, as reports indicate the company is reducing production targets and reallocating workers from Cybertruck assembly lines amid sluggish demand.
After delivering approximately 50,000 Cybertrucks, Tesla is now offering substantial discounts of up to $10,000 on inventory models, including some of its premium Foundation Series vehicles that have remained unsold since October.
The electric vehicle maker, which initially projected annual production capacity of 120,000 Cybertrucks, is operating well below those targets. The company has resorted to various incentives, including free lifetime Supercharging, to stimulate sales.
Industry observers note this represents a stark departure from Tesla's historical pattern of strong demand for new models. The situation appears particularly challenging as inventory builds up, with numerous Foundation Series trucks - meant to be exclusive launch editions - still seeking buyers.
The production scaling back comes as Cybertruck owners report facing unexpected public backlash, which many attribute to CEO Elon Musk's controversial political statements rather than the vehicle itself. At a recent Cybertruck Rodeo event in Texas, owners shared experiences of hostile reactions from other drivers.
While the Cybertruck managed to outsell other electric pickup trucks last year, the current production adjustments and aggressive discounting suggest Tesla is struggling to maintain the ambitious sales targets it initially set for the model. The company's flagship vehicle program appears caught between manufacturing challenges and market headwinds, raising questions about its long-term viability.
For Tesla, which has historically enjoyed strong demand for its vehicles, the Cybertruck's current trajectory represents an unusual position of having to actively stimulate sales for a newly launched product.