Tesla has initiated discounts on its Cybertruck as the electric vehicle (EV) market becomes increasingly competitive. Despite worldwide EV demand reaching new highs, Tesla's deliveries saw a slight decline in 2024 compared to the previous year. This drop comes as the EV sector experiences a surge, with full-year sales in the United States estimated at 1.3 million, marking a 7.3% increase from the previous year.
The Cybertruck made headlines last year by outselling the Ford Lightning F-150 in the U.S., securing its position as the fifth best-selling EV domestically. However, its growth has been impeded by high pricing, repeated recalls, and production issues at Tesla's Austin facility. In November, Tesla initiated its sixth recall within a year to address defective drive inverters, further affecting its market performance.
The influx of new competitive models from various automakers has eroded Tesla's market share. Despite this, the Tesla Model Y SUV and Model 3 sedan continue to lead as the top two best-selling EVs by a substantial margin. Nevertheless, Tesla's overall sales for the year declined by approximately 37,000 vehicles.
Production of the Cybertruck has reportedly slowed in recent weeks at Tesla's factory in Austin, Texas. In response, Tesla has started offering discounts on new Cybertruck vehicles listed on its website. The discounts reach up to $1,600 off new Cybertrucks, with price reductions varying based on configuration. Additionally, demo versions of the trucks in inventory are available at discounts of up to $2,600.
Despite these challenges, Tesla's Cybertruck continues to play a crucial role beyond consumer sales. It is currently being used to deliver supplies and provide wireless internet service to residents in Los Angeles affected by devastating wildfires. However, production hurdles remain evident, as Elon Musk recently communicated delays in deliveries.
"Apologies to those expecting Cybertruck deliveries in California over the next few days," – Elon Musk
The Cybertruck's base price hovered around $80,000 throughout 2024, and deliveries began reaching customers in 2023. As competition intensifies in the EV market, Tesla's strategic pricing adjustments aim to bolster its standing and attract potential buyers.