Tesla, the renowned electric vehicle manufacturer, has recently made significant moves regarding the production of its highly anticipated Cybertruck. In an unexpected turn of events, Tesla has informed Cybertruck production employees not to report to work for the next three days. This decision has raised questions about the demand for the vehicle, which once boasted millions of preorders.

Unraveling the Mysteries of Tesla Cybertruck Production

Initial Hype and Preorder Surge

Back in 2019, when the Cybertruck was first unveiled, it managed to amass over 250k pre-orders in less than a week. According to crowdsourced data, the vehicle even reached a peak of potentially 2 million reservations. This initial excitement set high expectations for the Cybertruck, making it one of the most talked-about electric vehicles in the market.However, when the truck finally hit the road, things didn't go as smoothly as planned. It came out late and over budget, missing some of the originally promised specs. The first available "Foundation Series" models started at $100k, a far cry from the promised entry-level $40k. Currently, the base price is $79k, but a promised future $61k base RWD model was recently removed from Tesla's website.

Current Production and Delivery Challenges

Despite these setbacks, the Cybertruck remains the best-selling electric pickup in the US and the third best-selling EV, with a very high average transaction price. This indicates that there is still a demand for the vehicle. But it seems that the demand is not as high as the initial expectations. Around October of this year, Tesla started allowing orders without a reservation, suggesting that the backlog of around 2 million vehicles might have been depleted.Currently, Tesla is one of the few EV producers that has sold fewer cars this year compared to 2023. Despite a significant increase in EV sales in 2024, Tesla's sales have been down in the first half of the year. To close out the year with strength, Tesla has started offering larger incentives for Tesla referral codes, lowering Model Y lease pricing, and adding more flexibility to its leasing program. Just today, Tesla also lowered Cybertruck lease pricing, which is another sign that the company is facing challenges in meeting the expected demand.

Production Shutdown and Possible Reasons

The recent production shutdown for three days at Tesla's factory in Austin, Texas, has added to the mystery. Tesla didn't provide a comment on why this shutdown is happening. However, it is possible that production is going faster than deliveries, and the company wants to avoid having a lot of inventory weighing down its balance sheet. It could also be related to a line upgrade or some sort of changes related to the recent Cybertruck inverter recall. But for a line upgrade, the end of the quarter would be a better time, and for the inverter recall, one would expect the changes to be made closer to when the problem was found. Since Tesla hasn't made a statement suggesting other reasons, Occam's razor suggests that production may be outpacing demand, and the pause is to help balance the two.Charge your electric vehicle at home using rooftop solar panels. Find a reliable and competitively priced solar installer near you on EnergySage, for free. They have pre-vetted installers competing for your business, ensuring high-quality solutions and 20-30% savings. It’s free, with no sales calls until you choose an installer. Compare personalized solar quotes online and receive guidance from unbiased Energy Advisers. Get started here. – ad*