Tesla’s Cybertruck was meant to redefine the electric pickup market. Instead, it has become a cautionary tale for the EV maker, exposing the cracks in its once-dominant position.
Just months after launching a cheaper rear-wheel-drive version (in April 2025), Tesla has quietly scrapped the model from the configurator, acknowledging what the market already knew: buyers couldn’t care less.
The problem began when Tesla unveiled the Cybertruck, announced as bulletproof, at a higher price point ($70,000) and with fewer capabilities than initially promised. A truck initially marketed as a rugged, futuristic workhorse with an 800-kilometer range hit the market with a real-world range of closer to 350 kilometers.
The rear-wheel-drive trim, intended to broaden the vehicle’s appeal, did the opposite by stripping away key features — including air suspension, a power tonneau cover, and bed outlets — for only an $8,500 discount. Within five months, it was killed.
Tepid sales
Despite Tesla’s claim of more than 1 million reservations, Cybertruck sales have been tepid. Analysts estimate deliveries are tracking at just 20,000 units annually, a fraction of CEO Elon Musk’s prediction of up to 500,000 per year.
Registration data suggest that fewer than 6,000 Cybertrucks were sold in the most recent quarter, potentially being outsold by Ford’s F-150 Lightning and GM’s electric pickups, neither of which carried the same hype.
True, the electric pickup segment has been underwhelming in the US. Ram announced that it has completely ditched its version, because the market doesn’t seem ripe and won’t change, since government incentives have been canceled.
The Cybertruck’s underperformance, too, is symptomatic of broader challenges. Tesla reported global deliveries of 384,000 vehicles between April and June, down 13.5 percent year over year — its steepest quarterly decline on record.
The “other models” category, which includes the Cybertruck, Model S, and Model X, collapsed 52 percent in the same period. These numbers represent a sharp reversal.
Lagging growth
Competition is catching up, both at home and abroad. In the US, Tesla’s EV market share has plunged to 38 percent as of August, its lowest level since 2017. Just two years ago, Tesla commanded over 70 percent.
While the overall US EV market grew 24 percent in July and 14 percent in August, in anticipation of the credit scheme ending this month, Tesla’s growth lagged far behind, inching up only 7 percent in July and slowing to 3.1 percent the following month. Legacy automakers, including Hyundai, Kia, Honda, and Toyota, have surged ahead in the US with aggressive incentives, while Volkswagen posted a 450 percent sales spike in July.
Part of the problem is Tesla’s stagnant product lineup. Aside from the Cybertruck, the company hasn’t launched a new model since 2023. The Model Y, refreshed earlier this year, has failed to reignite demand.
US military
Globally, Tesla also faces mounting pressure from Chinese EV leader BYD, which delivered 1 million electric vehicles in the first half of 2025, outpacing Tesla’s 721,000. In Germany, Tesla’s sales dropped nearly 40 percent in August compared to the same month last year, despite an overall increase in EV registrations.
But Tesla’s German Gigafactory chief André Thierig doesn’t shy away from optimism. He noted that Tesla supplies more than 30 markets and continues to see positive demand signals. However, expansion plans for the factory are on hold, with only the construction of a freight rail station moving forward.
The torpedoing of Tesla’s Cybertruck sales was ironically symbolized by the US military, which bought two of them. Not to serve their country on foreign battle missions, but to be used as bullseye targets.
The Pentagon wants to find out how well the pickup copes with military assault situations. It might also serve as a warning to Chechen warlord Kadyrov, who purchased a Cybertruck equipped with a machine pistol on the load bed, along with a few more. Reportedly, his personal Cybertruck was shut down by Musk over the remote.
