Tesla's polarizing Cybertruck is another reason for the company's recent downward trend.
What's happening?
Inventory of the electric vehicle has surpassed 10,000 in the United States, ArenaEV reported.
"This suggests a big slowdown in demand for the apparently highly anticipated electric truck, raising a lot of questions about its real market reception," the outlet stated.
It added that the figure could be inflated because of various discounts that essentially "create multiple listings for … the same vehicle."
The inventory accounts for half a year's worth of sales. Combined with a huge drop in demand, the company may not be able to sell 20,000 Cybertrucks a year. It had touted an annual production number of 250,000.
Why is this important?
"Industry observers suggest that the growing inventory is more likely a consequence of sluggish sales rather than a sudden spike in production," according to ArenaEV. "In fact, there are indications that Tesla has deliberately reduced the Cybertruck production rate in recent months."
Many of the trucks are over six months old, as production of Foundation Series Cybertrucks ended in October.
ArenaEV also noted that Tesla seemingly pivoted with its rear-wheel-drive Cybertrucks, offering only battery packs that matched those of the all-wheel-drive version instead of sticking to a plan to have multiple battery sizes. These vehicles also lacked features of similar iterations.
What's being done about the Cybertruck issue?
"Admitting that the Cybertruck program is facing trouble will be a difficult decision both for Tesla and Elon Musk," ArenaEV stated, saying the company would have to decide whether to reduce or halt production.
The EVs have been widely panned, partly because of multiple recalls and safety concerns. The large, heavy trucks are also not legal to drive in the United Kingdom.
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