Tesla (TSLA, Financial) is encountering difficulties with its Cybertruck model, the only new vehicle launched by the company in the past five years. Recent reports from Tesla employees indicate a reduction in production targets for the Cybertruck, along with significant downsizing of its production teams. Some workers from the Cybertruck line at Tesla's Texas Gigafactory have been reassigned to the Model Y production line.
According to Cox Automotive, Cybertruck sales fell to 6,406 units in the first quarter of 2025, down from 12,991 units in the previous quarter. Since its launch at the end of 2023, total sales have barely surpassed 46,000 units, significantly below Elon Musk's projected 1 million pre-orders.
Quality issues have plagued the Cybertruck, contributing to Tesla's record of recalling approximately 5 million vehicles in 2024. The Cybertruck alone has faced eight recalls in 15 months, with the latest involving side panel defects affecting all 46,000 sold units.
Despite these setbacks, CEO Elon Musk remains optimistic, promising to double U.S. vehicle production within two years. In response to market concerns, Tesla has introduced lifetime free charging incentives and a more affordable Cybertruck model priced at $70,000, though some investors doubt these measures will significantly boost sales.
