Tesla hits brakes on Cybertruck production amid slowing sales

Tesla is scaling back production of its long-anticipated Cybertruck, as dwindling sales and rising competition force the electric vehicle giant to reallocate resources and rethink priorities.

The production targets for several Cybertruck lines have been dramatically reduced in recent months, with some operating at only a fraction of their initial capacity, Caliber.Az reports via foreign media. 

Insiders say the company has also significantly downsized several Cybertruck teams—cutting staff by more than half in some cases—and begun transferring workers from the Cybertruck line at Gigafactory Texas to the more established Model Y production line. "It feels a lot like they're filtering people out," one employee commented. "The parking lot keeps getting emptier." Tesla has yet to publicly comment on the reported changes. 

The production slowdown follows a disappointing first quarter for the Cybertruck. Tesla delivered just 6,406 units—about half the number sold in the previous quarter, according to estimates from Cox Automotive. Despite CEO Elon Musk’s claim of more than one million preorders ahead of launch, fewer than 50,000 Cybertrucks have made it to customers as of a March recall notice. 

To attract new buyers, Tesla recently introduced its cheapest Cybertruck variant: a rear-wheel-drive model priced at $69,990. But the company's broader challenges are mounting. First-quarter vehicle deliveries dropped 13 per cent year-over-year, while Tesla’s stock has plunged roughly 40 per cent since January. 

With rivals expanding their EV lineups and public protests at Tesla showrooms increasing, the company is under growing pressure. Tesla began preparing for the shift in late 2024, when it warned Cybertruck staff of impending changes and surveyed them about alternate roles. Despite recent turbulence, Tesla’s share price remains 53 per cent higher than it was this time last year.

By Naila Huseynova