Despite Tesla Cybertruck deliveries starting in December 2023, the company has encountered serious headwinds entering the highly competitive electric truck segment. Prior to the Cybertruck’s reveal, it was projected to be a 250,000 annual unit intensive. Sales on its part have not been matching those lofty forecasts. In Q3 2024, the Cybertruck was able to move almost 17,000 of them off the lot. That’s a far cry from its own lofty forecast.
Tesla’s Texas factory, which has a considerable amount of unused capacity due to the slow ramp-up of Cybertruck production, has raised concerns among investors and industry analysts. The business’s difficulty in achieving its production targets has generated enough criticism. CEO Elon Musk certainly wasn’t reticent, declaring, “We really kind of dug our own grave with Cybertruck.” This admission does underscore the challenges Tesla has faced in their efforts to launch the most hotly anticipated vehicle to ever come to market.
First introduced in 2019 at a then-announced starting price of $40,000, the Cybertruck is now much more expensive. This difference has undoubtedly hampered its sales expectations and turned away many would-be customers. With great power, this vehicle brings a great price. For contrast, we should mention that much more established electric trucks like Rivian’s R1T sold 1,752 units last quarter to emphasize the dramatic difference. Rivian’s sales have felt the same drop, plummeting from 3,309 units in the second quarter of last year.
In early 2024, Tesla started promoting the Cybertruck to consumer buyers. But even with all these efforts, production is still not as high as expected. The company’s struggles to ramp up output have led to questions about its ability to capture a larger share of the growing electric truck market.
Tesla is a victim of this continuing reality as they try and keep pace with the growing number of electric truck competitors. Rivian and other challengers are fiercely fighting for their place in this developing industry. Ultimately, it’s in Tesla’s best interest to address its production problems and recalibrate its pricing approach to align with consumer demand.