Tesla cuts production target for Cybetruck
- production target downgrade and production disruption
Tesla has hinted at plans to lower its Cybertruck production target for the first quarter of 2025, and in fact, production line utilization has been reduced and some teams have shrunk by more than half.
Cybertruck sales in the first quarter of 2025 were 6,406 units, down roughly half from the previous quarter.
Production targets were also adjusted once in December 2024, with some of the production line’s workforce moving to Model Y production in recent years, as well as internal restructuring.
Cybertruck production lines were temporarily suspended in early December 2024, which is attributed to slowing demand and rising inventories.
- sluggish sales and rising inventories
Cybertruck recorded more than 1 million reservations before its launch, but actual deliveries were less than 50,000.
By the third quarter of 2024, it had produced 30,582 units and delivered 21,450 units, with about 9,000 remaining in stock.
The slowdown in demand has prompted Tesla to pause some production and adjust its strategy to dispose of inventory.
We stopped producing low-cost models and switched to a strategy of focusing on high-priced models worth more than $100,000.
- Market Responses and Forecasts
Elon Musk has set an annual production target of 250,000 units, but experts predict that it will only be around 55,000.
Demand in the market is not meeting expectations due to the Cybertruck’s unique design, high prices, and competitors’ price cuts.
Tesla shares are also trading lower as production disruptions and slowing demand overlap.
Tesla is trying to secure margins and financial stability by adjusting its strategy to focus on high-priced models, but there are concerns that overall sales will decline due to lower demand for low-priced models.
- Other Issues
For some early-production vehicles, performance improvements such as electric motor replacement are also being carried out.
The Cybertruck’s China departure facility has circulated, but Tesla has officially denied this. It is only available in select markets, including the U.S., Canada, and Mexico.