Tesla is offering discounts on Cybertrucks and there’s speculation about what led to this move by the leader in the electric vehicle game. Price listings on the website reveal that customers looking for a new model could pay up to $1,600 less, depending on the configuration, and demo versions in inventory could save buyers up to $2,600.
Tesla is dropping Cybertruck prices amid EV market boom
Elon Musk and his electric transportation powerhouse, Tesla, are making Cybertrucks more attractive to buyers by dropping the price to hand off some idle inventory. One reason behind the reduced prices is likely the state of the EV market, which some may describe as “flooded” considering the growing popularity of EVs over recent years.
Reports state that manufacturing of the eye-catching, angular truck at the Tesla factory in Austin, Texas, has lost momentum. Numbers leaving the production line are dropping while many new models remain on showroom floors.
Elon Musk’s price promise and Wall Street’s expectations never materialized
The first deliveries of the futuristic raw steel pickup began reaching consumers in 2023 after the original unveiling of the model four years earlier in 2019. Enigmatic and polarizing Tesla CEO Elon Musk had originally indicated a price of $40,000 in the United States, but the reality was closer to $80,000 for drivers buying in 2024.
Wall Street had previously considered the Cybertruck as an important driver of growth for Tesla’s core sales, but it seems the experts missed the mark on this one if the price has had to be dropped to attract customers.
Cybertrucks went on sale while there were delivery delays in California
While the LA fires were raging on in California at the beginning of January, Elon Musk did his part by dispatching a fleet of Cybertrucks to assist in efforts to fight the flames. This meant that customers waiting for their Cybertrucks to be delivered had to wait a while longer.
The vehicles were donated for use by the National Guard to transport supplies, provide WiFi and Starlink access, and serve as mobile power sources and charging stations. Musk apologized to customers on social media via his X platform:
“Apologies to those expecting Cybertruck deliveries in California over the next few days. 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.”
Tesla identified the Los Angeles County Sheriff’s Department’s Altadena station as the target of the Cybertruck deployment.
Tesla’s EV market share has been eroded by competition
Data reveals that the Tesla Cybertruck outsold the Ford Lightning F-150 in the U.S. in 2024 and earned fifth place on the list of best-selling EVs. It’s estimated that Tesla sold just under 39,000 Cybertrucks to American customers last year.
However, in addition to competition from other quality EV brands, three more factors have contributed to the need to offer a discount: six recalls in one year, production complications at the Austin facility, and the significantly higher-than-average new model price.
EV sales in the U.S. hit a record high but Tesla suffered a dip
The demand for EVs reached a peak in 2024 but Tesla’s sales declined slightly year-over-year. A bunch of new electric models from a wide range of brands entered the market, which ate into Tesla’s share of the market pie. EV sales in the United States in 2024 reached a record number of 1.3 million, an increase of 7.3% from 2023, but new Tesla sales dropped by 37,000 vehicles from the previous year.
The top two best-selling Teslas in 2024 by a significant margin were the older, more affordable Model Y SUV and the Model 3 sedan, but sales of both models still decreased.
With regard to the production issue at the Austin plant, rumors about the future of the Cybertruck began to sound bleak when, after completing the backlog of orders, workers were requested to skip work for three days in early December 2024.
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