Tesla Discontinues Orders for Least Expensive Cybertruck Model

Tesla has stopped accepting orders for the least expensive version of its highly anticipated Cybertruck, priced at $61,000. According to the Tesla website, the company is now focusing on selling the more expensive versions, starting at $100,000, which are available for immediate order and delivery as early as this month.

Demand and Production Challenges:

Given the significant resources CEO Elon Musk has invested in its development, the demand for the Cybertruck is a critical metric for Tesla investors and fans. Tesla aims to produce 200,000 units annually. In October, Musk claimed that there were 1 million reservations for the truck, though the current pricing and lower-than-expected driving ranges have led some customers to reconsider their orders.

Sam Abuelsamid, an analyst at Guidehouse Insights, suggested that the reduced availability of the less expensive model indicates that actual demand may be lower than the initial 1 million reservations.

Sales Performance of Tesla Cybertruck:

Despite the challenges, the Cybertruck sold nearly 4,800 units in July, marking its best month yet. It has become the best-selling vehicle in the U.S., priced at over $100,000, and has over 16,000 units sold to date.

However, a spokesperson from Cox Automotive said sustaining high sales volumes at this price point may prove difficult.

Production and Delivery Updates:

The Cybertruck, known for its unconventional trapezoidal design inspired by the movie Blade Runner and its stainless-steel body, began deliveries in November 2023 after several delays and a challenging production ramp-up. Initially, Musk had estimated that the truck would cost $40,000 and offer a 500-mile range on a single charge.

Tesla’s website no longer lists the $61,000 model, advertised with a 250-mile range and a 2025 delivery target. The $99,990 dual-motor variant with a 318-mile range is available for delivery as early as this month. The $119,990 tri-motor variant with a 301-mile range is expected to be available from October.

Inventory Considerations:

Analyst Sam Abuelsamid pointed out that Tesla appears to have a significant inventory of the two-motor and three-motor versions, which could influence the company’s focus toward these higher-priced models.