Tesla's Cybertruck, once the darling of electric vehicle hype, is now a headache for the company.
With nearly 10,000 unsold units clogging inventory across the United States, valued at roughly £390 million ($513 million), Tesla faces mounting pressure to abandon its premium pricing strategy and roll out aggressive incentives.
Can Tesla turn this around, or is the Cybertruck destined to be a costly misstep?
A Growing Inventory Crisis
The Cybertruck's stockpile is a stark contrast to the million-plus reservations Tesla touted at its 2019 reveal. As of 7 May 2025, reports indicate that unsold Cybertrucks are overwhelming Tesla's lots, with some estimates suggesting 2,400 units were idle by April 2025 alone, according to MSN Money.
The company's first-quarter sales plummeted 50% from the previous quarter's 12,991 units, per Reuters, contributing to a broader 13% decline in Tesla's global deliveries.
Tesla's response? A cheaper rear-wheel-drive model priced at £48,600 ($64,000) with federal EV credits, launched in early 2025. But even this move has failed to spark demand, with analysts predicting just 20,000 deliveries for fiscal 2025, down from 37,000 in 2024.
Compounding the issue, Tesla's refusal to accept cybertruck trade-ins at some dealerships, as reported by Mediaite on 2 April 2025, signals a lack of confidence in the vehicle's resale value, which has crashed 55% year-over-year.
Recalls and Rebranding Efforts
The Cybertruck's woes extend beyond pricing. Eight recalls since January 2024, including a March 2025 fix for detaching trim panels, have eroded consumer trust. These issues, coupled with vandalism targeting Tesla properties amid Elon Musk's controversial political ties, have tarnished the brand's image.
In a bid to salvage sales, Tesla revamped its marketing in April 2025, shifting from futuristic, Mars-bound imagery to practical visuals of the Cybertruck hauling construction materials, as noted by The Economic Times. 'It's less DeLorean, more Ford F-150,' one Tesla salesperson remarked, highlighting the pivot to appeal to traditional truck buyers.
Yet, functionality remains a sticking point. Traditional pickup owners prioritise towing and hauling capacity, areas where the Cybertruck has been criticised for lacking ruggedness.
Tesla's offer of lifetime free charging for the £74,000 ($97,000) Foundation Series Cybertruck, introduced in March 2025, has done little to move the needle, as the deal's savings, roughly £39 ($51) per charge, are limited to non-commercial use.
Incentives or Bust?
With inventory ballooning, analysts are urging Tesla to slash prices further or offer substantial incentives, such as zero-percent financing or larger discounts.
Tesla should immediately address public opinion where posts on X are still in support of Tesla, but the sentiment underscores the need for bolder moves.
The looming threat of US EV tax credit cuts under the Trump administration could further squeeze affordability, making incentives critical. Tesla's shift of workers from Cybertruck to Model Y production lines at its Austin Gigafactory, reported on 17 April 2025, signals a strategic retreat to focus on its more profitable SUV.
The Cybertruck's premium pricing, once justified by its bold design and hype, is now a liability. Tesla must act swiftly, through deep discounts or enhanced incentives—to clear its backlog and restore faith in the vehicle.
Otherwise, the Cybertruck risks becoming a cautionary tale of ambition outpacing market reality. And the glimpse of the Tesla's Cybertruck future is looks grim.
