Tesla cuts Cybertruck production, shifts workers to Model Y

Tesla is slowing Cybertruck production by shifting workers to Model Y production as inventories of electric pickup trucks build up.

The automaker had planned a production capacity of 250,000 Cybertrucks per year at Gigafactory Texas, and CEO Elon Musk said he planned to increase that capacity to 500,000 per year.

However, things are not going in that direction.

After selling around 40,000 Cybertrucks in its first year of production (2024), Tesla is already slowing production of Cybertrucks, according to documents obtained by Business Insider.

The report states that Tesla asked employees working on Cybertruck production to switch to Model Y production for “business needs”:

“As we continue to evaluate schedules to meet business needs, we will be making changes to Model Y and Cyber ​​schedules and want to make sure your preferences are taken into account.”

These moves come as Tesla faces a surge in Cybertruck inventory and has started to directly mark it down by $1,600 and even add a “lifetime free supercharge” on some inventory:

Last month we reported that Tesla had gone so far as to upgrade the “Foundations Series” badges on some Cybertrucks to sell them as cheaper regular Cybertrucks and US Cybertrucks approved for the Canadian market to try to displace them.

With the release of its fourth quarter 2024 sales report, Tesla showed that Cybertruck deliveries in the fourth quarter are flat or even down compared to the third quarter, despite the launch of cheaper versions of the vehicle during the quarter.

The move of Cybertruck workers to the Model Y also comes as Tesla prepares to build a new version of the Model Y at Gigafactory Texas after its launch in China.

However, Tesla doesn’t usually launch new production at the expense of another vehicle program, but this time it’s convenient due to the Cybertruck’s demand issues.