Tesla's Cybertruck Faces Challenges Despite High-End Demand

Tesla has halted orders for its $61,000 Cybertruck model, focusing on the $100,000 version available immediately. Despite ambitious plans and 1 million reservations, demand concerns arise as prices increase and driving ranges fall short of promises. Analysts suggest maintaining high sales volumes will be challenging.

Tesla has halted orders for its least expensive Cybertruck model, which was listed at $61,000, while pushing the $100,000 variant for immediate order and delivery. The shift is reflected on Tesla's official website.

Demand for the Cybertruck is heavily scrutinized by Tesla investors and enthusiasts, particularly because CEO Elon Musk has emphasized its significance with plans to manufacture 200,000 units annually. Despite 1 million reservations noted by Musk in October, the rising cost and reduced driving range have made some potential buyers hesitant.

'It shows that demand is a lot less than a million trucks,' stated Guidehouse Insights analyst Sam Abuelsamid. The Cybertruck saw its best U.S. sales month in July, outperforming all vehicles priced over $100,000 with nearly 4,800 units sold, per Cox Automotive data. However, sustaining such high sales volume at the current price is expected to be challenging.

(With inputs from agencies.)