Tesla Halts Orders for $61,000 Cybertruck as Demand Surges for Higher-Priced Models

Tesla Inc. (TSLA.US) has ceased taking orders for the cheapest version of its electric pickup truck, the Cybertruck, which retailed at $61,000. However, buyers can still immediately purchase the $100,000 version, with deliveries expected this month.

The demand and supply dynamics of the Cybertruck have been closely monitored by Tesla investors and enthusiasts. Tesla CEO Elon Musk has channeled significant resources into the development of the Cybertruck, aiming for an ambitious annual production goal of 200,000 units. As recently as October last year, Musk highlighted that orders for the Cybertruck had soared to 1 million units.

Interestingly, due to the higher-priced versions of the Cybertruck offering less driving range than initially projected, many potential customers have shown a preference for the more affordable variant. This shift in consumer sentiment underscores the importance of the lower-priced model in the product lineup.

Data from Cox Automotive reveals that the Cybertruck saw its best sales month this July, with nearly 4,800 units sold, making it the best-selling vehicle in the U.S. priced above $100,000. A spokesperson for Cox Automotive commented, "So far, the Cybertruck has sold over 16,000 units, but maintaining high sales volume at this price point will be challenging."

Elon Musk previously acknowledged in November last year that while the Cybertruck is a fantastic product, it would take 12 to 18 months for it to become a significant positive cash flow contributor. He also pointed out the manufacturing challenges posed by the new technologies involved in the Cybertruck, likening the development process to "digging our own grave."