Tesla Offers Discounted Financing as Cybertruck Sales Struggle

PALO ALTO, Calif. — Tesla Inc. has launched a promotional financing offer for its Cybertruck amid disappointing sales of the electric pickup truck. The company, led by CEO Elon Musk, has been struggling to meet ambitious production goals, prompting this move to boost demand.

Despite claiming over 1 million reservations for the Cybertruck and Musk’s prediction of producing 500,000 units annually, current sales figures paint a different picture. After a year and a half in production, it is estimated that Tesla may only manage to sell around 10% of its targeted output.

In 2024, Tesla reportedly delivered approximately 40,000 Cybertrucks, suggesting that this year, the automaker may encounter even more challenges in selling the vehicle. To address lagging demand, Tesla is offering a limited-time financing rate of 1.99% APR for well-qualified buyers, a steep discount compared to the standard rate of 5.84% for excellent credit customers.

As part of its strategy to rejuvenate sales, the automaker has also revised its offerings, including cheaper versions of the Cybertruck, known as the “Foundations Series.” However, market demands have shifted, and factors like rising production costs and a more expensive final model may impact potential sales.

Analysts suggest that unless Tesla can significantly increase sales, it could face a tough year ahead. They speculate that without these incentives, the company may struggle to sell more than 10,000 Cybertrucks in the current quarter, projecting annual sales might fall short of even 40,000 units.

Industry insiders have also highlighted that despite the discount, Tesla will find it challenging to make the base model profitable, raising questions about the long-term sustainability of the Cybertruck initiative.

In addition to the financing offer, Tesla’s ongoing efforts to attract buyers also include incentives for the Model 3. Recently, the company introduced 0% APR financing for new Model 3 orders, aiming to further stimulate demand during a challenging sales quarter.

As Tesla navigates these hurdles, the future of the Cybertruck remains uncertain, with ongoing debates about its viability and market position in the competitive EV landscape.