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Tesla Cuts Cybertruck Production as Sales and Inventory Challenges Mount

Tesla reduces production targets, reallocates workers, and introduces steep discounts as Cybertruck sales drop by 50% in Q1 2025 and unsold inventory piles up.

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In an aerial view, brand new Tesla Cybertrucks sit parked in a lot at a Tesla dealership on April 02, 2025 in Corte Madera, California.
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Tesla Inc. vehicle facility is pictured in Costa Mesa, California, U.S., November 1, 2023. REUTERS/Mike Blake/File Photo

Overview

  • Tesla has lowered Cybertruck production targets and reassigned workers to Model Y production lines at its Texas Gigafactory since January 2025.
  • Cybertruck sales fell to 6,406 units in Q1 2025, a 50% decline from the previous quarter, contributing to a broader 13% drop in Tesla's overall deliveries year-over-year.
  • The National Highway Traffic Safety Administration recalled over 46,000 Cybertrucks in March 2025 due to exterior panel defects, the eighth recall for the model since its launch.
  • Tesla is offering discounts of up to $10,000 on unsold Cybertrucks, with approximately 2,400 units valued at $200 million still in inventory as of April 2025.
  • Despite CEO Elon Musk's initial projection of 250,000 annual Cybertruck sales, fewer than 50,000 units have been delivered since the model's late 2023 launch.