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Tesla Offers Discounts on Cybertruck Amid Growing EV Competition

Prime Highlights:

Tesla has introduced discounts for new Cybertruck vehicles, with savings up to $1,600 on new inventory models and around $2,600 for demo versions.

Production delays and high pricing have impacted Cybertruck growth, despite it being the fifth best-selling EV in the U.S. in 2024.

The U.S. EV market saw record sales in 2024, but Tesla’s overall sales declined, attributed to increased competition from new models.

Key Background:

Tesla has begun offering significant discounts on its Cybertruck models, a move aimed at addressing the challenges facing the electric vehicle (EV) market. The reductions, listed on Tesla’s website, offer savings up to $1,600 for new Cybertruck configurations and as much as $2,600 for demo units currently in inventory. These incentives come amid production slowdowns at Tesla’s Austin, Texas facility, where the highly anticipated vehicle, unveiled by CEO Elon Musk in 2019, is built.

The Cybertruck, which was originally touted with a starting price of around $40,000, saw its base price soar to nearly $80,000 in 2024. Despite being one of the most high-profile entries into the EV truck market, production and delivery issues have hampered its growth. In November, Tesla initiated its sixth recall of the year to address defective drive inverters, a move that further slowed the vehicle’s rollout.

While the Cybertruck outsold the Ford Lightning F-150 in the U.S. in 2024 and ranked as the fifth best-selling EV in the country, the vehicle’s performance has been overshadowed by its price and repeated recalls. Overall, Tesla’s vehicle deliveries in the U.S. saw a slight decline in 2024, a stark contrast to the record-breaking EV sales nationwide, with competitors ramping up their presence in the market. Data from Cox Automotive indicates that total U.S. EV sales grew by 7.3% year-over-year, reaching an estimated 1.3 million units, while Tesla’s deliveries fell by approximately 37,000 vehicles.

Despite the discounting efforts, Tesla continues to dominate the U.S. EV market, with the Model Y SUV and Model 3 sedan taking the top spots as best-sellers. However, even these older models saw a drop in sales compared to the previous year. Elon Musk recently apologized to customers in California for delays in Cybertruck deliveries, explaining that some vehicles were repurposed for emergency response efforts. The trucks were being used to transport supplies and provide wireless internet to areas affected by severe wildfires in Los Angeles. As competition in the EV sector intensifies, Tesla is clearly adjusting its strategy to maintain its leadership while managing production challenges.