Tesla Hopes The Model Y Can Fill The Cybertruck’s Gap

Tesla announced the controversial Cybertruck back in 2019, with plenty of production delays, and it has only just now gotten around to offering the most affordable rear-drive version. It seems that there may not have been too much demand for such a design-focused model in such a practicality-minded market, as fewer than 50,000 Cybertrucks have reportedly sold so far, with plenty of old inventory now heavily incentivized.

Now, Tesla is reportedly shifting production away from the Cybertruck line in response to the demand that actually exists for its lineup of more affordable and less controversial models.

The Model Y Is Where Tesla Sees Potential

Business Insider reports that multiple sources with insider knowledge claim Tesla is shifting workers away from the Cybertruck line and over to the Model Y production line, with others moving to other projects or potentially being let go altogether. It was said that the parking lot was thinning out, according to one anonymous source. Unfortunately for Tesla, this is not the start of a negative trend, as sales have been dropping for some time.

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Tesla has reportedly been reducing Cybertruck targets since December of last year. A few staff members were let go following annual reviews in February, as well. The $70,000 rear-drive Cybertruck went on sale in April, so we’ll see how that impacts sales over the next quarter, but with Cybertruck production reportedly being shifted, it’s anyone’s guess when these new, more affordable variants will arrive in buyers’ hands.

Sales Are Falling Significantly Compared To 2024

Cox Automotive reported Tesla moved only half as many Cybertrucks this quarter as compared to the previous Q4 2024 period, at just more than 6,400 trucks sold. It was a 13 percent drop compared to Q1 2024, and the EV manufacturer is now offering big incentives to try to spur demand for its wedge-shaped pickup. But Tesla may need to get more creative in order to keep investors happy amid the stock market’s current volatility.

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Tesla’s corporate stock is down as much as 40 percent as of the time of this report. Tesla CEO Elon Musk has recently promised that production numbers overall would double in the next two years, somehow. Meanwhile, other reports have indicated a new “affordable” entry-level Tesla has been pushed back from a debut that was planned for this year.

Presumably, Musk is still betting everything on the autonomous robotaxi dream, but progress in that respect has been somewhat slow. In addition, several other automakers are quickly gaining momentum in the self-driving space.

Source: Business Insider, H/T: CarScoops