The Tesla Cybertruck, billed as the harbinger of an electric revolution, seems to be encountering challenges after a high-profile launch. Initial orders were promising, but recent signals point to declining demand.
A forced break for Austin plant workers
According to a memo revealed by Business Insider, employees on the Cybertruck production line at Tesla's Austin factory were told they could stay home for three days, from December 3 to 5. Although they will be paid for those days of absence, the decision is fuelling speculation about a drop in demand.
Some employees, however, will continue to work; Tesla has provided no official comment to clarify the situation.
Irregular production for several months
Since the end of October, several employees assigned to the Cybertruck line have reported being given a variety of tasks, from additional training to cleaning, instead of vehicle assembly. This variability in schedules comes on top of a reduction in working hours noted as early as April, when workers' shifts were shortened.
One employee even declared that “When I started at Tesla, it was easy to get overtime. Now, I consider myself lucky if I hit 40 hours.”
Once-solid sales are softening
After a promising start, which saw the Cybertruck outperform rivals like the Rivian R1T and Ford F-150 Lightning, demand has been running out of steam. In the first nine months of 2024, Tesla reportedly sold and registered fewer than 30,000 Cybertrucks in the U.S., according to data from Cox Automotive and Kelley Blue Book.
- - 1st quarter 2024: 5,789 units sold
- - 2nd quarter 2024: 5,769 units sold
- - 3rd quarter 2024: 16,692 units sold
While these figures show an increase over the quarters, the current rate of production could exceed demand, pushing Tesla to slow down to avoid a build-up of inventory in its delivery centres.
A strategy to adjust?
The switch to the more affordable non-Foundation Series models, priced some $27,000 CAD less, seems to have temporarily buoyed sales. However, Tesla has reportedly already contacted customers who reserved their vehicles in 2023, suggesting that the much-vaunted backlog may not be as big as advertised.
What future for the Cybertruck?
With the fourth quarter of 2024 shaping up to be decisive, it remains to be seen whether Tesla will be able to maintain momentum or be forced to adapt further. Either way, there’s one ongoing certainty: the Cybertruck continues to polarize opinion, both on the road and in the automotive industry.
