Tesla stalls Cybertruck production ahead of earnings
Tesla is pulling back on production of its much-hyped Cybertruck, just days before it reports first-quarter earnings on Tuesday.
Workers at the company’s Texas factory have reported that staff have been reassigned to Model Y, a Tesla car coming out in June, and that several Cybertruck teams have been cut by over half, Business Insider first reported.
This suggests waning momentum for the futuristic vehicle that once had over a million reservations.
The electric pickup’s sluggish ramp-ups adds to a broader slowdown at the leading EV maker.
Deliveries dropped 13 per cent globally in the first quarter of this year, and registrations in California, which is its key US market, fell 15 per cent.
With sales lagging and shares down around 40 per cent year to date, investors are increasingly anxious for a reset in strategy.
What’s more, a fresh wave of tariffs is now adding to Tesla’s woes.
Trump’s administration has floated the possibility of hiking import duties on Chinese EVs, prompting questions about retaliatory measures that could hit Tesla’s operations in China – where it builds cars for export to Europe and other markets.
The trade risk, combined with a lack of meaningful product launches, growing backlash against billionaire owner Musk’s politics, and rising competition, has fuelled a sharp loss of market share.
As scrutiny intensifies, investors will be watching closely on Tuesday for updates on the upcoming robotaxi roll-out, more affordable EVs and any signs of stabilisation in sales.
“Tesla comes into results as arguably the most scrutinised company in the world”, said Hargreaves Lansdown’s Matt Britzman.
Bur despite tariff headwinds, as well as Musk’s rumoured step back from DOGE, “a return to business as usual would be welcomed with open arms”, he added.