Tesla Cybertruck Sales Struggle Amid Growing Inventory Issues and Protests

FRANKLIN, Tenn. — Tesla‘s Cybertruck faces mounting challenges as the automaker reports nearly 2,400 of the vehicles sitting in inventory, amounting to approximately $200 million. Just over a year and a half after its highly anticipated launch, the Cybertruck’s sales are faltering due to various factors, including declining demand and quality concerns.

The decline in sales is alarming for Tesla, especially considering the initial enthusiasm surrounding the Cybertruck’s launch. When Tesla unfurled its plans for the Cybertruck in 2019, CEO Elon Musk claimed there were over a million reservations. Yet, as of now, the company has sold only 46,000 units, significantly less than the 250,000 units Musk projected annually.

Challenges affecting the Cybertruck’s sales trajectory include a lack of consumer trust, stemming from quality issues leading to multiple recalls. Recently, Tesla issued an eighth recall due to a potentially dangerous problem with a trim piece. These ongoing issues have prompted many buyers to reconsider their purchases. In March, Tesla announced a containment hold on Cybertrucks due to concerns about this trim piece detaching while driving.

Some Cybertruck owners have attempted to trade in their vehicles but were met with disappointment; Tesla reportedly does not accept its own model for trade-ins. This move has further exacerbated resale value concerns, with used Cybertruck prices dropping 55% year over year, contributing to growing dissatisfaction among owners.

“Many Cybertruck owners reported trying to trade in for a new vehicle, only to be told Tesla currently doesn’t accept its own vehicle as a trade-in,” a tech publication noted. “Those who’ve had their trucks for longer have been urged to pursue Lemon Law claims to resolve their issues.”

The combination of high prices, which have soared from a promised starting price of $39,900 to around $80,000 for the base model, and extensive quality problems are hindering sales efforts. “This is a vehicle that was supposed to sell 250,000 units a year,” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management. “Instead, it’s selling far less.”

As Tesla grapples with inventory concerns, social and political factors have also played a role in its plummeting popularity. Protests against Tesla’s operations and Musk’s political affiliations have surged, with demonstrations erupting across at least 253 cities worldwide this year. Furthermore, instances of vandalism against Tesla properties suggest mounting public frustration.

The combination of production woes and growing protests reflects a significant struggle for Tesla amidst its ambitious goals. In light of these developments, the outlook for the Cybertruck remains uncertain.