Tesla’s Cybertruck Is Dying
Elon Musk promised the most unique thing on the road, a truck built to take on the F-150. Tesla's plans now point toward humanoid robots, and Ford's own electric flagship offers a warning about what buyers really want.
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When Elon Musk launched the Cybertruck, which was supposed to be EV competition to America’s wildly popular full-sized pickups–Ford’s F-150, the Chevy Silverado, and Ram- he said it was the largest step forward in the sector for years. It was announced in 2019 and first hit the market in 2023. He called it the “most unique thing on the road.” Perhaps it was too unique to sell in volume.
Earlier this year, Tesla (NASDAQ: TSLA | TSLA Price Prediction) ended production of its high-end SUV, the Model Y, and the Model S sedan. According to Electrive’s story in January, “Over the weekend, Tesla announced on X that production of its two premium models has ended. As stated in January, the section of the Fremont, California, plant that previously manufactured these models will now be repurposed to produce Tesla’s humanoid robot. After 14 and 11 years of production, respectively, and including several updates, the Model S and Model X had become less significant in Tesla’s sales mix and are being discontinued without a direct successor.”
The two discontinued vehicles will free up the factories that built them to become robot-making facilities. Tesla’s robot is called Optimus, and the factory can build one million of them each year. Musk said Tesla would sell more robots than cars within two years. Investors have been skeptical.
The end of the Cybertruck leaves Tesla with just the Model 3 and Model Y, each less expensive than the models being discontinued. Some car analysts think this will ding Tesla’s overall deliveries, which were 486,532 in the third quarter. Estimates suggest Tesla has sold fewer than 45,000 Cybertruck units since it launched.
The Cybertruck ran into the same buzzsaw as the Ford (NYSE:F) F-150 Lightning. It was Ford’s EV flagship and carried the brand of its best-selling vehicle. Ford also found out that buyers of full-sized pickups want them to be gas-powered. Ford discontinued the Lightning, and it sold its last unit in the third quarter. F-150 gas-powered sales continue to rise.
Musk learned the hard way that just because a vehicle carries the Tesla brand, sales aren’t guaranteed.
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
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