Tesla Halts Orders for Base Cybertruck, Shifts Focus to $100,000 Model

Tesla has stopped taking orders for the $61,000 Cybertruck, making a $100,000 version of the electric pickup the new base offering. The move surprised many observers as demand appears to be falling well short of initial expectations – and comes just days after Tesla CEO Elon Musk acknowledged Cybertruck may be overpriced.

A visit to the Tesla website reveals that the automaker has halted taking orders for the $61,000 version of the Cybertruck, until now the lowest-priced model of the all-electric pickup. At this point, potential customers only can place orders for versions of Cybertruck topping $100,000.

As is the norm for the Texas-based automaker, it is not responding to media queries about that move. But it comes at a peculiar time considering that CEO Elon Musk said last week in a tweet on X that “We need to make it more affordable.”

Several analysts told Headlight.News they were confounded by the latest move considering Cybertruck sales appear to be running well below original expectations, especially with Tesla having claimed it had received over 1 million advance orders for the controversial vehicle.

Inventory piling up

Cybertrucks are piling up in a field alongside the Tesla center on the northwest side of Houston, as the accompanying image show. Reader Zerin Dube, who supplied several pics, noted that the number of vehicles has been growing for weeks. And other sources have reported similar inventory build-ups in other parts of the country.

It’s the latest indication that demand for the all-electric pickup is falling short of original expectations. And pricing appears to be part of the problem, as Musk acknowledged. Anecdotal reports by several analysts suggest many of those who put early reservations in for a Cybertruck are simply standing by, declining to complete their orders until more affordable versions become available.

But that’s not what Tesla appears to have in mind. Since beginning production last autumn, ahead of delivering the first of the trucks in November, the automaker has focused solely on the top-line Foundation Series. It’s not even clear when it actually will build less expensive products, such as the base, $61,000 truck.

Clearing out the lots

That’s not an entirely unusual approach. Many automakers start off with production of top-line trim packages. That happened with several high-profile EVs, including the GMC Hummer EV. But that approach can create headaches if buyers don’t go along with the strategy.

All the unsold “inventory is the Foundation Series and they probably want to clear that out before they take orders for the less expensive one,” said Stephanie Brinley, principal analyst for S&P Global Mobility.

For its part, Tesla isn’t saying how many unsold Cybertrucks it has on its lots, nor when it might begin shifting production to add less expensive models.

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Challenges mount

When Musk first unveiled a Cybertruck prototype during an event at the headquarters of SpaceX – his rocket company – in November 2019 it appeared to be a certain success. The automaker soon claimed to have logged over 1 million advance reservations. But it appears to be having trouble converting them into actual orders.

Part of the problem is that the production pickup falls short of Tesla’s original promise. Range is a third lower, even as the price has gone up by more than 50%. Add the fact that it took far longer than expected to put the electric pickup into production, the first dozen delivered almost four years to the day after Cybertruck’s reveal.

Meanwhile, it has taken sharp criticism from most reviewers – though some have also had high praise. Critics say its design isn’t particularly functional for a pickup. And there have been a number of quality concerns and a series of recalls.

Competition

Add the fact that there are now numerous alternatives, including the Chevrolet Silverado EV, the Rivian R1T and the Ford F-150 Lightning – with more coming over the next 12 months.

Cybertruck ranked second, behind Lightning, for the first half of 2014, U.S. motorists purchasing an estimated 11,558 of the Teslas, according to Cox Automotive, compared to more than 15,000 of the Ford EVs. But Cybertruck appeared to have moved into first for the second quarter of the year, reported Cox, estimating sales of 8,758.

That suggests demand is ramping up, but so is production capacity. Tesla has indicated it will reach an annualized run rate of as many as 130,000 Cybertrucks in 2024, growing to 150,000 by next year. It will need to achieve a significant increase in demand to justify that capacity.

Finding new buyers

On the flip side, if it can get all 1 million advance reservations finally converted to actual orders it would have enough in hand to keep the factory in Austin, Texas running flat out for seven years without taking in any new orders.

Right now, however, it appears Tesla won’t come close to that goal. There have been reports that new customers – who should be going to the very back of the line – are being offered the chance to take delivery quite quickly if they’re willing to go for one of the Foundation Series vehicles.

One buyer, Lupe Marquez, told TorqueNews that he received an e-mail telling him his “Cybertruck is ready for delivery” just two months after placing his order.