Tesla Offers Discounts on Cybertruck Inventory Amid Slowing Sales
A Shift in Strategy
Tesla has started offering discounts on its new Cybertruck vehicles, a move that signals a shift in the company’s strategy to boost sales. The discounts, which range from $1,600 to $2,600, are available on select configurations and demo models.
Production Slowdown
The decision to offer discounts comes as production of the Cybertruck has slowed down at Tesla’s factory in Austin, Texas. Despite being unveiled in 2019, the angular, unpainted steel pickup only began reaching customers in 2023. Initially priced at around $40,000, the base price in the US has since increased to around $80,000.
Challenges Ahead
The Cybertruck was expected to be a key driver of growth for Tesla’s core automotive sales. However, its high price, repeat recalls, and production issues have hampered growth. In November, Tesla initiated its sixth recall in a year to replace defective drive inverters. As a result, deliveries declined slightly year-over-year in 2024, despite record EV demand worldwide.
Market Share Erosion
A slew of new competitive models from various automakers has eroded Tesla’s market share. According to Cox Automotive, full-year EV sales reached an estimated 1.3 million in 2024 in the US, an increase of 7.3% from the prior year. However, Tesla’s sales for the year declined by about 37,000 vehicles.
Top-Selling EVs
The Tesla Model Y SUV and Model 3 sedan remain the top two best-selling EVs by a wide margin. However, sales of these older, more affordable models dropped from the previous year. Cox estimated Tesla sold around 38,965 Cybertrucks in the US last year.
Delays and Apologies
In recent days, Elon Musk apologized to customers in California for delays in delivering their Cybertrucks. The trucks are being used to bring supplies and wireless internet service to people in Los Angeles impacted by devastating wildfires. Musk promised that new trucks would be delivered by the end of the week.
A New Direction
The discounts on Cybertruck inventory mark a new direction for Tesla. As the company faces increasing competition and slowing sales, it’s clear that a change in strategy is needed. Will this move be enough to boost sales and regain market share? Only time will tell.
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