Elon Musk has reduced Cybertruck prices by $10,000 as Tesla faces challenges selling off its growing vehicle inventory.
Elon Musk has recently announced a significant price cut for the Tesla Cybertruck.
The price of the electric vehicle has been reduced by $10,000 as Tesla faces challenges in selling its stock.
This move comes as Tesla’s stock prices have dropped over 40% since the beginning of 2025, raising concerns among investors.
Elon Musk forced to cut Cybertruck price by $10K amid sharp Tesla stock decline
The Cybertruck, which was released in November 2023, has encountered various issues, including recalls and negative press.
Originally, Musk had promised that the Cybertruck would be available for $39,900.
However, the actual starting prices turned out to be $74,000 for the standard model and $94,000 for the high-tech ‘Cyberbeast’ version.
Despite the high price, the vehicle was expected to appeal to consumers looking for an all-American electric pickup.
Due to disappointing sales figures, Tesla is now offering discounts on the Cybertruck, with reductions averaging around $8,000 to $10,000.
This discount is significant, especially since it exceeds the federal tax credit available for electric vehicles.
Tesla struggles with low Cybertruck sales figures.
Tesla has struggled to meet its sales goals for the Cybertruck. Musk initially aimed for an ambitious target of selling 250,000 units per year by 2025.
However, the reality is starkly different, with current sales at about 25,000 units annually—just 10% of the initial projection.
In early 2025, reports indicated that Tesla had approximately 2,400 unsold Cybertrucks in its inventory, amounting to about $200 million in unsold vehicles.
Many of these are older 2024 models that do not qualify for federal tax credits, complicating the situation further.
Tesla is reducing its workforce due to declining sales.
Amid these challenges, Tesla has reportedly begun to reduce its workforce related to Cybertruck production.
Sources suggest that production teams have been cut by half, leading to concerns among workers.
One employee noted that the parking lot at the factory has been getting emptier, indicating a decrease in manufacturing activity.
In the first quarter of 2025, Tesla sold only 6,406 Cybertrucks, which is half of what was achieved in the previous quarter.
This decrease raises questions about the future demand for the vehicle.
Reservations for Cybertruck exceed actual sales significantly.
Although Musk claimed that there were over a million reservations for the Cybertruck before its launch, the actual sales figures tell a different story.
A recall in March revealed that less than 50,000 Cybertrucks have been sold in total.
This discrepancy highlights the growing gap between consumer interest and actual purchases.
Production targets have also been scaled back, raising concerns about the overall future of the Cybertruck and Tesla’s broader strategy.
Tesla faces challenges amid a declining market context.
In general, Tesla’s sales are down by 13% compared to the same time last year.
This decline is compounded by recent events of violence and calls for boycotts against the company.
Despite these challenges, Tesla shares have seen an increase of over 53% compared to the previous year.
This situation has led to uncertainty among investors, especially with major shareholders, including Kimbal Musk, selling off stocks.
There are also concerns about the potential impact of tariffs from President Donald Trump on the company.
New Cybertruck variants receive mixed reviews from consumers.
Tesla recently released a rear-wheel-drive variant of the Cybertruck priced at $69,990.
However, the response to this new model has been less than enthusiastic.
Critics argue that key features, such as adaptive suspension and rear lightbars, have been removed, leading to disappointment among potential buyers.
Despite the current difficulties, Elon Musk has expressed optimism about the future.
He has pledged to double Tesla’s production rates in the United States over the next two years.
Whether this goal will be achievable remains to be seen, but it reflects Musk’s determination to turn around the fortunes of the Cybertruck and Tesla as a whole.