Industry insiders and market analysts are interpreting this move as a signal that the futuristic pickup—once thought to be a game-changer—is struggling to find its footing in an increasingly competitive EV market. A Tesla source reportedly said, “They’re not moving them, and it’s time to shift strategy.”
Tesla’s Financial Snapshot: A Tough Quarter
Tesla’s Q1 2025 earnings report paints a sobering picture. The company posted a 26% year-over-year decline in net profit, citing supply chain issues, increased production costs, and lagging sales—particularly in its Cybertruck segment.
Tesla Q1 2025 Financial Summary
| Metric | Q1 2024 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $23.4 Billion | $21.8 Billion | -6.8% |
| Net Profit | $2.7 Billion | $2.0 Billion | -26.0% |
| Cybertruck Deliveries | 18,200 units | 11,400 units | -37.3% |
The Cybertruck, which was expected to boost Tesla’s revenue in 2025, is now viewed as a growing concern for the EV giant.
Cybertruck Discounts: What’s on Offer?
In an aggressive move to offload existing inventory, Tesla is offering discounts of up to $16,000 on select Cybertruck models. The base price for certain trims now starts just below $60,000, significantly lower than the previously advertised price range of $79,990 to $96,000.
Cybertruck Price Comparison
| Model | Original MSRP | New Discounted Price | Total Savings |
|---|---|---|---|
| Dual Motor AWD | $79,990 | $64,000 | $15,990 |
| Foundation Series | $96,000 | $80,000 | $16,000 |
Tesla hopes the slashed prices will attract buyers who were previously hesitant due to cost and uncertainty about the truck’s real-world performance.
Why Isn’t the Cybertruck Selling?
Despite intense pre-launch excitement and over 1 million pre-orders claimed by Tesla, the Cybertruck’s post-launch momentum has faltered. Several factors are contributing to its lackluster performance:
- High Price Tag: The initial pricing significantly exceeded early expectations of a $39,000 starting point.
- Design Polarization: The bold, angular exterior has drawn mixed reactions—some calling it revolutionary, others impractical.
- Production Bottlenecks: Slow ramp-up and limited delivery capacity frustrated early adopters.
- Utility vs. Practicality: Many truck buyers still prefer traditional models for towing, cargo, and comfort.
According to AutoMarket Analytics, Cybertruck reservations are being canceled at a growing rate, as buyers opt for more traditional or affordable alternatives.
Analyst Reactions: “A Strategic Misstep?”
Wall Street and auto industry analysts are beginning to question Tesla’s bet on the Cybertruck.
“Tesla tried to redefine the pickup truck market without fully understanding what truck buyers actually want,” said Daniel Kline, an automotive sector analyst with NewEdge Research. “Innovation doesn’t always equal market fit.”
The move to discount is also seen as a sign of inventory surplus, with reports from major Tesla delivery centers across Texas, California, and Nevada indicating growing unsold stock.
Tesla’s Response and Next Steps
Tesla has yet to issue a formal press release addressing the discounts, but CEO Elon Musk hinted at a strategic re-focus during a recent investor call.
“We are optimizing operations across all platforms. Not every product hits immediately, but we always adapt,” Musk stated.
Sources suggest that Tesla is preparing to:
- Shift marketing efforts to emphasize affordability
- Streamline production and reduce Cybertruck output
- Expand incentives such as free charging or trade-in bonuses
The company may also divert more resources to its Model Y and new compact EV platform, expected to debut in early 2026.
Impact on Tesla’s Stock
Following the announcement of Cybertruck discounts and earnings shortfall, Tesla stock dropped 4.6% in early morning trading. Investors remain cautious, waiting to see whether demand rebounds in Q2 or if further markdowns signal deeper systemic challenges.