Jamie Spencer
Price Cuts on New and Demo Cybertruck Models
Tesla has started offering discounts on new Cybertruck vehicles in its inventory, marking the latest shift in pricing strategy for the highly anticipated electric pickup. According to Tesla’s website, discounts reach up to $1,600 for new models and $2,600 for demo versions, with price reductions varying based on configuration.
This move comes as production at Tesla’s Austin, Texas factory has reportedly slowed in recent weeks, raising concerns about supply chain issues and demand fluctuations.
Cybertruck’s Rocky Road to Market
First unveiled by CEO Elon Musk in 2019 with an estimated starting price of $40,000, the Cybertruck has entered the market at a significantly higher cost. Over the course of 2024, the base model in the U.S. has been priced closer to $80,000, making it a more premium offering than initially promised.
Despite initial excitement, the Cybertruck has faced challenges, including repeat recalls and production delays. In November 2024, Tesla issued its sixth recall of the year, replacing defective drive inverters, adding to concerns about reliability.
Cybertruck’s Position in the EV Market
While the Cybertruck outsold the Ford F-150 Lightning in 2024, it remains a niche product in Tesla’s lineup. According to Cox Automotive data, Tesla sold approximately 38,965 Cybertrucks in the U.S. last year, making it the fifth best-selling EV domestically.
However, Tesla’s overall vehicle deliveries declined slightly in 2024, despite global EV sales reaching a record 1.3 million units in the U.S., marking a 7.3% increase from the prior year. Competitive pressure from legacy automakers and new EV startups has started to erode Tesla’s market share.
Declining Sales Across Tesla’s Lineup
Although the Tesla Model Y and Model 3 continue to dominate as the best-selling EVs in the U.S., both models experienced a drop in sales from the previous year. Meanwhile, the Cybertruck’s high price point and production challenges have limited its impact on Tesla’s overall growth.
Wall Street once viewed the Cybertruck as a key driver of Tesla’s expansion, but as delivery numbers falter, analysts are reassessing its long-term significance.
Cybertruck Deployment for Emergency Relief
Amid delivery delays, Elon Musk recently apologized to California customers waiting for their Cybertrucks. He revealed that Tesla is temporarily repurposing Cybertrucks to aid wildfire relief efforts in Los Angeles, using them to transport supplies and provide Starlink internet connectivity in disaster-stricken areas.
“Apologies to those expecting Cybertruck deliveries in California over the next few days,” Musk wrote on X (formerly Twitter). “We need to use those trucks as mobile base stations to provide power to Starlink Internet terminals in areas of LA without connectivity. A new truck will be delivered end of week.”
What’s Next for the Cybertruck?
The Cybertruck’s future remains uncertain, with production issues, recalls, and slowing sales raising concerns about its long-term viability. While Tesla’s discounting strategy could help stimulate demand, the high price tag and growing EV competition continue to challenge its market success.
With Tesla facing increased pressure from global automakers, investors and analysts will be closely watching how the Cybertruck evolves in 2025 and whether pricing adjustments will be enough to sustain interest.
