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Tesla Cybertruck Production Reportedly Scaled Back Amid Sales Slowdown
Reports indicate that Tesla has adjusted production downward for its highly anticipated Cybertruck and increased discount offerings as sales have decelerated, leading to a growth in vehicle inventory. The electric vehicle manufacturer, led by Elon Musk, is reportedly responding to shifting market dynamics affecting its flagship pickup truck.
Production Reductions and Workforce Adjustments
Business Insider reported that Tesla has diminished production goals across multiple assembly lines dedicated to the Cybertruck. This adjustment comes just a month after the company temporarily halted deliveries of the futuristic vehicle due to widespread accounts of exterior trim components detaching.
Sources cited by Business Insider revealed that some Cybertruck production lines are now operating at a reduced rate compared to their previous output. Simultaneously, there have been reported reductions in staffing levels within these production areas.
Reallocation of Production Workforce
Furthermore, the electric automaker has reportedly reassigned a portion of its Cybertruck production team to concentrate on the Model Y production line. This shift in workforce allocation has been underway since January, indicating a strategic realignment of manufacturing priorities.
Earlier Production Target Modifications
This reallocation of resources follows earlier production modifications initiated in December 2024. At that time, Tesla notified its workforce of forthcoming adjustments to production schedules and revised output targets, signaling an ongoing effort to fine-tune manufacturing in response to market conditions.
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Cybertruck Sales Underperform Company Goals
Despite optimistic projections from CEO Elon Musk, the Cybertruck has reportedly fallen significantly short of the company’s stated objective to sell 250,000 units annually. The vehicle, initially revealed in 2019, generated considerable anticipation, celebrated for its innovative design and advanced specifications.
By late 2023, coinciding with the commencement of production, Musk voiced confidence that yearly Cybertruck output would eventually reach 250,000 units by 2025. However, current sales figures have not aligned with these ambitious targets.
Current Sales Pace and Inventory Levels
As of 2025, Tesla’s yearly Cybertruck sales are reportedly pacing at approximately 25,000 vehicles, representing just a tenth of Musk’s initial forecast. Reports earlier in the month indicated that Tesla entered the second quarter of the year with an estimated 2,400 Cybertrucks in inventory, a substantial stockpile valued at over $200 million.
This inventory includes earlier 2024 models, many of which do not qualify for federal tax incentives, alongside certain “Foundation Series” vehicles, which were discontinued in October 2024. These unsold vehicles have resulted in a substantial inventory backlog for the automaker, with some units remaining in stock for six months or longer.
Increased Discount Incentives
In response to mounting inventory pressures, Tesla has significantly increased promotional discounts on the Cybertruck. Recent incentives have included price reductions of up to $10,000 per vehicle, with average discounts hovering around $8,000. However, despite these substantial incentives, the automaker has reportedly only managed to reduce its surplus inventory by approximately 100 vehicles since the beginning of the month.
Production Output Reduction at Texas Gigafactory
To address these challenges, Tesla has implemented notable reductions in its production output at its Gigafactory in Texas. These production adjustments are a direct response to the slower-than-anticipated sales and the growing vehicle inventory.
Delivery Declines and Broader Automotive Trends
According to estimates from Cox Automotive, Tesla delivered only 6,406 Cybertrucks in the first quarter of 2025. This figure represents a 50% decrease compared to the deliveries achieved in the preceding quarter, highlighting a significant deceleration in Cybertruck uptake.
Despite Musk’s earlier claims of over one million reservations prior to the truck’s market debut, it has been disclosed in a March 20 recall filing that fewer than 50,000 Cybertrucks have been delivered to date. This slowdown in Cybertruck sales is occurring amidst a broader downturn in sales across Tesla’s overall vehicle lineup. First-quarter delivery results for 2025 were down 13% compared to the same period in the prior year, indicating wider market headwinds for the company.
Furthermore, intensified market competition and public demonstrations related to Musk’s involvement with government advisory roles have added to Tesla’s current challenges. Tesla’s stock value has decreased by approximately 40% year-to-date, although it remains over 53% higher compared to the previous year.
Tesla’s Future Production Goals
Despite these ongoing challenges, Elon Musk recently reiterated Tesla’s objective to double its U.S. vehicle production within the next two years. This ambitious goal suggests that the company remains optimistic about its long-term growth prospects despite current market pressures and the Cybertruck’s initial sales performance.