Tesla Cybertruck in the making. Image: Yahoo Finance
(The Post Script)- Automaker Tesla is shifting workers from the Cybertruck to the Model Y. This is due to a rare annual decline in deliveries. The company distributed 1.79 million vehicles in 2024, down 1% from the previous year.
A survey was done and stated the following: “As we continue to assess schedules to meet business needs, we’ll be making a change to Model Y and Cyber schedules, and we want to ensure that your preferences are considered.”
Two workers noted that changing production schedules for existing vehicles is unusual, as these shifts are typically only for new vehicles. Furthermore, workers reported that the company is scaling down its Cybertruck team and reducing production of truck parts, with some staff moving to different teams.
Barrons reported that Tesla TSLA+0.15% stock wavered on Wednesday after dropping in the previous session. The National Highway Traffic Safety Administration launched an investigation into a new feature on its vehicles.
Tesla stock fell 4.1% on Tuesday, closing at $394.36 on a tough day for the market. The S&P 500 SPX +0.16% dropped 1.1%. If the drop was due to the NHTSA action, investors have overreacted.
Tesla’s ability to compete in 2025, despite slowing EV demand, is uncertain. The Cybertruck will likely be a distraction and a rounding error in sales, with deliveries around 27,000 since late 2023.
Tesla’s Sparks and Fremont factories, does not produce Cybertrucks. Six workers from these factories, claim that they were not aware of any schedule changes. One Austin Gigafactory worker said most people wanted to stay on the Cybertruck team, but “some people were forced to switch over.” The worker speculated the shift was due to the higher profit margins on the Model Y. Tesla did not respond to a request for comment.
Tesla has reduced leasing prices for its Cybertruck truck, which was its first new vehicle in four years. Early customers received their vehicles faster than expected, indicating reconsideration of non-binding reservations. Tesla faces increasing competition from legacy automakers and Chinese startups, with its market share falling below 50% last year.
About The Author
