Tesla Inc. (NASDAQ:TSLA) is reportedly scaling back its Cybertruck production and shifting workers in response to a sales slump.
What Happened: Over the recent months, Tesla has been reducing production targets for several Cybertruck lines, with some operating at a significantly reduced capacity. The size of several Cybertruck production teams has also been cut down. Since the start of the year, Tesla has been reassigning workers from the Cybertruck line at its Gigafactory Texas to the Model Y line, reported Business Insider.
“It feels a lot like they’re filtering people out,” a worker commented. “The parking lot keeps getting emptier.”
In Q1 2025, Tesla sold 6,406 Cybertrucks, a 50% drop from the previous quarter. Although Elon Musk initially claimed that the vehicle had over a million reservations, fewer than 50,000 Cybertrucks have been delivered to date.
Tesla’s overall sales have also been declining, with Q1 delivery results showing a 13% decline from the same period in 2024. This decline coincides with increasing competition, protests outside showrooms, and a 40% drop in stock value year-to-date.
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Why It Matters: Tesla has once again adjusted its Cybertruck production schedule, similar to changes made in December 2024. Back then, the company informed workers about schedule changes and asked for their role preferences. Workers were told at the time that Tesla intended to reduce Cybertruck production targets for the first quarter of 2025. Notably, in March, the EV maker announced the recall of more than 46,000 Cybertrucks in the U.S. due to a safety issue pertaining to the exterior panel.
The Cybertruck, a brainchild of Elon Musk, is being considered as one of the biggest automotive flops in decades according to experts. The vehicle fell short of Musk’s ambitious sales target by a whopping 84%, with no signs of recovery in sight.
Furthermore, Tesla is reportedly sitting on nearly 2,400 unsold Cybertrucks worth $200 million in inventory across the U.S., which is approximately $200 million worth of inventory. The sticker shock from the base model’s price, coupled with frequent quality issues, has led to eroding trust in the vehicle.
Tesla has a momentum rating of 92.50% and a quality rating of 93.93%, according to Benzinga's Proprietary Edge Rankings. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
