Tesla, a pioneer in the electric vehicle industry, is facing a major sales crisis with its highly anticipated Cybertruck model. In the U.S., the company now holds an inventory of approximately 2,400 Cybertrucks worth $200 million, and the stockpile continues to grow. The primary reasons behind this buildup include manufacturing defects, recall issues, and weak demand.
Although Cybertruck’s mass production began 18 months ago, sales have fallen significantly short of Tesla’s expectations. Initially, manufacturing difficulties, the high price of the Foundation Series edition, and the lack of access to a $7,500 tax credit were cited as obstacles to higher deliveries. However, with these challenges now resolved, Tesla is still struggling to move inventory at the desired pace.
Tesla faced a major recall operation in March due to a manufacturing defect that caused trim pieces to detach, posing serious safety concerns. As a result, many deliveries were put on hold, and previously sold vehicles now require urgent repairs. By March 21, Tesla claims to have fixed these issues in new production units, but addressing defects in already sold vehicles remains an ongoing challenge.
Tesla’s struggle to sell new Cybertrucks is mirrored in the sharp decline in their resale value. Prices for used Cybertrucks have dropped by 55% over the past year, with a 13% decline in the last three months and 6% in March alone. Adding to the concerns, Tesla does not allow Cybertruck owners to trade in their vehicles for another Tesla model. Many customers who have had their trucks stuck in service centers for extended periods have attempted to return them, but Tesla has denied these requests, insisting on legal procedures instead.
Despite the initial excitement surrounding Cybertruck’s launch, Tesla’s growing inventory crisis poses a serious threat to the model’s future. The company may need to slow down production, introduce discounts, or offer new incentives to reignite interest. Additionally, boycotts and protests against Elon Musk are adding to the company’s challenges. As Tesla navigates this crisis, the fate of the Cybertruck remains uncertain.