Cybertruck Sales Plunge 51% Amid Price, Quality Issues

Tesla's Cybertruck, the electric pickup truck, experienced a significant decline in sales during the second quarter of this year. According to market researcher Cox Automotive, sales plummeted by 51% year-on-year, with only 4,300 vehicles sold. This sharp decrease in demand is a stark contrast to the initial enthusiasm surrounding the vehicle, which had collected deposits for over 2 million orders, enough to fill production for 16 years, as confirmed by design head Franz von Holzhausen in December 2023.

The high price and build quality problems have contributed to the Cybertruck's struggles. The most popular version of the Cybertruck, the all-wheel-drive model with one motor for each axle, is priced at $80,000 without extras, significantly higher than the $50,000 promised at its reveal in November 2019. Additionally, the vehicle has faced multiple recalls and build quality issues, including problems with the glue holding parts of the truck’s stainless steel exterior sheet metal in place and the use of less durable aluminum castings for the frame.

Despite these challenges, some relief may come in the current quarter as buyers previously on the fence could opt in favor of a purchase before the $7,500 federal tax credit expires at the end of September. However, the future of the Cybertruck remains uncertain, with opinions divided among Tesla fans on whether the vehicle should be scrapped for a more conventional look or kept as Musk intended.

The second half of the year will be a critical test of EV demand. Q3 will likely be a record, followed by a collapse in Q4, according to the analyst's forecast. The hyper-competitive EV market is providing the troubled automaker no relief, as rivals from legacy brands, including the Ford F-150 Lightning and GMC Hummer EV truck, have eclipsed the Cybertruck's sales.