Adapted by:
Alberto de la Torre
WriterI've been a journalist and audiovisual communicator since 2016. My specialty is the automotive sector, where I’ve been analyzing the industry and its developments for more than five years. I'm particularly interested in new forms of mobility and the changes that cities are experiencing, especially in urban planning and the promotion of cycling and personal mobility vehicles.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
Tesla needs to clear its inventory, as indicated by its latest offers in the U.S. Unable to lower prices further, the company has launched a series of incentives to boost demand for its electric vehicles (EVs).
According to Bloomberg, in addition to one-time discounts to clear out the last units of the Tesla Model Y before its full refresh—a common practice among manufacturers—the company is offering 0% financing for Tesla Model 3 buyers.
But the discounts don’t stop there. They focus on another vehicle that, by concept, should have been easy to sell: the Tesla Cybertruck. Tesla is offering free lifetime charging at its Superchargers to buyers of its Foundation version.
It’s the best example of how the model is failing.
Too Expensive and Too Complicated to Sell
This offer is available on Tesla’s sales channel for in-stock vehicles—cars already manufactured for immediate delivery, some used as show cars or driven a few thousand miles.
Most importantly, purchasing the Foundation Package includes lifetime charging at Tesla Superchargers. This incentive aims to move the most expensive Cybertruck units. None are priced below $90,000, and the Cyberbeast Foundation, the most powerful model with three electric motors, starts at $110,800.
Tesla has previously struggled with production for its Foundation version. At the end of last year, CEO Elon Musk downgraded some units of this version to sell them at a lower price. The change was simple: removing some badging and using software to disable Full Self-Driving (FSD), Tesla’s most advanced driver assistance system.
The Foundation Series package originally cost $20,000, with a steep $12,000 premium over the base model with the FSD package for minor cosmetic upgrades.
Judging by inventory, Tesla overestimated demand, especially for this version. The company’s approach to the vehicle has been flawed. It had the potential to be a flagship model, showcasing its capabilities, but the strategy failed.
A Model Never Meant to Be a Bestseller
The Tesla Cybertruck ranked as the tenth best-selling electric car in the U.S. in 2024, according to Car and Driver, with estimated sales just under 25,000 units. Tesla doesn’t break down sales by model, but expectations were higher.
The company aimed to make the Cybertruck a bestseller, initially planning a $40,000 price tag but later announcing a $60,000 version. Currently, the cheapest model costs $72,490.
Leading up to its launch, reservations climbed to 1.9 million, fueling immense expectations. But months later, Tesla is struggling to place part of its production.
The issue is that the approach contradicts what the car should have been. The Cybertruck should have been an aspirational model—built for brand image, produced in limited numbers, sold at a high price, and used to attract attention and customers. This marketing strategy has long been used in the auto industry.
Many automakers invest in flagship models for brand identity rather than volume sales. Renault rebranded its Formula 1 team as Alpine to reinforce its high-performance image. BMW offers the BMW XM and iX, despite low sales. Ford maintains distinct lines: premium and exclusive models like the Bronco alongside more affordable mass-market vehicles.
These vehicles create a story and position a brand at the top of its range. For younger companies, this strategy is even more critical. Even Xiaomi has used record-breaking lap times to market its EVs.
The downside is that the financial payoff for such models takes years. They require careful production and strategic positioning.
Before the Cybertruck hit the streets, demand seemed insatiable. Tesla had two options: attempt to meet it or create scarcity by producing only top-tier versions, fostering exclusivity.
Instead, Tesla opted for rapid mass production. The Cybertruck, meant to be its technological flagship, has already been recalled nearly a dozen times for defects, highlighting cost-cutting measures. Some parts have even detached while the vehicle was in motion due to poor assembly.
Additionally, Tesla’s $40,000 price announcement undermined any premium positioning. While it generated enormous reservation numbers, real demand hasn’t materialized.
Tesla has seen small successes. The Cybertruck became the most-purchased luxury vehicle in the U.S. But by aiming for an unrealistically low price, producing at high volume too quickly, and cutting costs aggressively, Tesla undermined the narrative it could have built around the vehicle.
The Cybertruck could have been Tesla’s unicorn—an exclusive, aspirational model drawing in customers. A year later, it seems Tesla has already hit the sales ceiling.
Image | Somalia Veteran (Unsplash)
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