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Tesla (TSLA) is discounting select Cybertrucks, the latest indication that the EV pickup and its polarizing design are suffering from a slump.
As first reported by CNBC, Tesla started offering discounts on new Cybertrucks, with discounts of $1,600 depending on trim level and options — and up to $2,600 for low-mileage demo versions.
After a steep run-up in Wednesday’s session, Tesla shares dropped nearly 3% in early trading on Thursday.
Discounts for the Cybertrucks in inventory are only the latest indication that demand for the truck — that CEO Elon Musk said was “off the hook” last year — is waning.
In early December, Tesla furloughed Cybertruck line workers at Giga Austin, telling them to take a few days off. Interestingly, it was not the first time Cybertruck workers were pulled off the line. Last October, four factory workers told Business Insider that several times they'd either been “sent home or given additional training exercises or cleaning duties to fill their scheduled work hours.”
In November, Tesla launched leasing for the Cybertruck, hoping to take advantage of the EV tax credit for leased vehicles, which don't have income and MSRP restrictions for the full $7,500 credit.
And in August Tesla halted orders of the cheapest Cybertruck, the rear-wheel drive (RWD) version, which came in at around $61,000 and offered 250 miles of range. Now the "cheapest" Cybertruck on sale is the $79,990 all-wheel drive (AWD) version, with a range of 325 miles.
Meanwhile, the various steps to boost demand appear to have been working. Per Kelley Blue Book, the Cybertruck was the fifth most popular EV in America last year, with 38,965 units sold. The Ford F-150 Lightning EV pickup was right behind in sixth place at 33,510. The Rivian R1T placed in the No. 10 slot, with 11,085 trucks sold.
Despite the nearly 40,000 units sold — and a 3% market share — Bernstein analysts in January declared the Cybertruck was a “bust,” given the resources needed to develop the vehicle. "We highlight Cybertruck as a massive strategic miscalculation and opportunity cost for Tesla, given that it took 4 years to develop, and inevitably diverted attention away from a lower priced offering, which Tesla is now in desperate need of," lead auto analyst Toni Sacconaghi wrote.
That said, never count out Tesla. Bernstein recommended shorting Tesla as its “best idea” in 2024, which backfired as Tesla shares jumped 64% last year.
Pras Subramanian is a reporter for Yahoo Finance covering the auto industry. You can follow him on X and on Instagram.