Tesla shifts Cybertruck workers amid slowing demand

Slowing sales of Tesla’s Cybertruck are pushing the automaker to reposition its workforce and change its pricing strategies.

Jan 15, 2025 - 11:50
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Tesla shifts Cybertruck workers amid slowing demand

Tesla’s Cybertruck debuted with much fanfare, quickly becoming the best-selling electric pickup in the U.S. during the second quarter of 2024. However, after clearing a backlog of preorders, demand waned. By December, Tesla signaled trouble by instructing Cybertruck production staff in Austin to take a three-day break.

This slowdown coincided with an internal memo announcing workforce adjustments. Tesla surveyed employees about their preferred assignments, hinting at potential overcapacity on the Cybertruck line. Some workers voluntarily transitioned to Model Y production, but others were reassigned without choice, according to employees.

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Focus shifts to Model Y production

Tesla’s pivot highlights the sustained success of the Model Y, which remains a global favorite. Recently refreshed with design tweaks, including Cybercab-esque front and rear lights, the Model Y is poised to dominate for a second consecutive year as the world’s best-selling vehicle.

Tesla Cybertruck

Jetcity image - Adobe Stock Images

The strategic shift suggests Tesla is preparing for increased Model Y demand while hedging against the Cybertruck’s lukewarm reception. It’s fair to say that the Cybertruck’s styling is more of a novelty than you get with the rest of Tesla’s lineup. It makes sense then that the smaller pool of buyers who are willing to pay up for the Cybertruck can also be depleted relatively quickly once orders start going out. The lifetime of most memes is short, and we may be seeing that play out in car form with the Cybertruck.

Incentives aim to boost Cybertruck sales

Tesla has taken steps to revive interest in the Cybertruck. The vehicle now qualifies for the $7,500 federal tax credit in 2025, although that credit may not last much longer once President-elect Trump takes office later this month.

A view of Tesla Cybertruck at Electrify Expo San Francisco, the largest electric vehicles (EV) event in North America is held in Alameda, California, United States on August 24, 2024.

Anadolu/Getty Images

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Tesla has also reduced leasing rates multiple times. In December, lease prices dropped to $899 per month for the dual-motor version and $999 for the tri-motor Cyberbeast. Tesla also dangled free lifetime Supercharging for inventory vehicles, though restrictions apply.

Despite these incentives, the Cybertruck struggles to capture traditional truck buyers, who might view it as a niche product rather than a practical workhorse. Its, uh, futuristic design and steep pricing—without the promised affordable version—limit its appeal beyond early adopters and Tesla enthusiasts.

Final thoughts

While the Cybertruck remains a truly incomparable vehicle in the electric truck market, it's also a very divisive product. Tesla’s challenge lies in reshaping its image to attract mainstream truck buyers and delivering on its promises of a more affordable variant.

For now, Tesla appears to be doubling down on its strengths with the Model Y, leaving the Cybertruck to find its footing on its own time. Still, as more electric pickups come onto the market from heavyweights like GMC and Ram, Tesla is only going to have a harder time marketing the Cybertruck moving forward.

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