When Tesla enthusiasts got their first peek at the Cybertruck, reactions were mixed. Despite its controversial design, the Cybertruck became the best-selling electric vehicle pickup in the United States by last October — and the third-best-selling EV overall, according to TechCrunch.
However, demand for the angular vehicle has seemed to drop sharply so far in 2025.
What's happening?
Autoevolution reported April 18 that demand for Cybertruck in Q1 had "fallen off a cliff," according to multiple sources. Now, Tesla's Gigafactory Texas is slashing production and reassigning Cybertruck workers to Model Y lines.
With around $200 million worth of Cybertrucks in its inventory, Tesla has stopped accepting trade-ins of the electric pickup, Electrek reported.
Why is this important?
Consumers who want to switch to a different EV will likely have trouble recouping as much value for their Cybertruck. Autoevolution noted that multiple used car resellers have lowered the quotations by as much as half the original price of a Foundation Series AWD model.
What's more, Tesla has brought thousands of jobs to Texas as the biggest private employer in Austin, with Gigafactory Texas serving as Cybertruck's manufacturing hub. Diminished demand for the vehicle has the potential to impact the livelihoods of numerous workers.
In March, Tesla issued a recall on the Cybertruck — the eighth recall on the vehicle since its November 2023 release.
While that may be one reason for the drop in Cybertruck demand, the automaker also saw its earnings plummet 71% while delivering 13% fewer vehicles year-over-year in Q1.
Factors contributing to this slide include increased competition in major markets from other EV makers — including Chinese automaker BYD — and CEO Elon Musk's increased political activity and approach to his role as the de facto head of the Department of Government Efficiency.
More than half of respondents in a recent Yahoo News and YouGov survey said they had an "unfavorable" opinion of Musk, with 37% saying Musk was some or all of the reason why they wouldn't consider buying or leasing a Tesla in the future. So while it may not be swaying the majority of potential car buyers, it appears to be influencing enough of them to cut into the company's bottom line.
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While EVs don't generate asthma-linked tailpipe pollution when driven, making them much better for the environment over their lifetimes compared to gas-powered vehicles, the production process — from mining for battery materials to assembly — accounts for some pollution.
Tesla is now offering up to $10,000 discounts on Cybertrucks in its inventory, according to Autoevolution, which could entice buyers on the edge to make the leap — and help ensure the energy and raw materials that went into manufacturing the Cybertrucks aren't a sunk cost.
And despite Tesla's unenviable start to the year, the EV market overall is still booming, with EVs generally safer and less expensive to maintain and operate than gas-powered vehicles — mainly due to no need for oil changes as well as far fewer total parts that may need replacing.
If you're interested in buying a new EV or selling your used vehicle, you'll have plenty of options — whether you choose to purchase from a brand like Tesla, Ford, or Hyundai, or turn to a company like Recurrent to get the best return on your pre-loved EV.
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