Tesla’s Cybertruck Sales Push: Will Better Financing Drive Demand?
Tesla is rolling out new financing options for its Cybertruck, a move that could make the controversial electric pickup more appealing to potential buyers. This comes on the heels of the Cybertruck lease program, which offers the vehicle at just over $1,000 per month for 36 months. It’s clear Tesla is working hard to move these vehicles.
Tesla appears to be working through a backlog of Cybertrucks. The company reportedly has a surplus of its $120,000 Foundation Edition models, reserved for early adopters. According to reports, Tesla has been removing the “Foundation” badges and selling these vehicles at the base dual-motor price of $79,990, making them eligible for the $7,500 tax credit.
Improved Financing
Before the recent offer of 1.99% APR on financing for 60 months or less, the best APR previously available was 5.84%—assuming excellent credit—potentially saving buyers up to $8,000 on financing alone. The automaker is also selling non-foundation model Cybertrucks for $69,190 with the included $7,500 tax credit.
Sales Figures and Market Context
Tesla doesn’t publicly release sales figures for its vehicles, making it difficult to assess the Cybertruck’s performance directly. Some estimates suggest Tesla sold fewer than 40,000 Cybertrucks last year. For context, Elon Musk reported receiving over 1 million reservations for the Cybertruck, with a stated production capacity of up to 500,000 units per year.
Tesla isn’t alone in facing EV sales challenges. Falling short of initial expectations, automakers are dealing with a range of issues.
The Battery Question: Degradation Over Time
One significant concern for potential EV buyers is battery degradation. Like smartphone batteries, EV batteries lose capacity over time. Car experts at Edmunds estimate a potential loss of up to 2% of the quoted range annually. For a Cybertruck with a 340-mile range, this could mean just over 272 miles after 10 years. Tesla offers an eight-year, 150,000-mile powertrain warranty for the Cybertruck.
Battery failure symptoms can include a sudden 20% drop in range or a gradual 30% loss, along with charging issues.
Internal Combustion Engine Comparison
Internal combustion engines also degrade, albeit with different symptoms. Gasoline engines lose horsepower as components like piston rings and valves wear down. This is important to consider when buying any vehicle that will last for a long time.
Addressing the “Warts”: Customer Concerns About EVs
A 2024 J.D. Power survey reveals that EVs are still not fully meeting customer expectations. The top reasons shoppers reject EVs include:
- Lack of charging station availability
- Purchase price
- Charging time
- Limited range
- Inability to charge at home or work
Tesla leads the industry in charging availability with over 7,000 Supercharging stations. However, 17 other automakers have partnered to gain access to Tesla’s charging network. Interestingly, the J.D. Power survey shows that owners of non-Tesla EVs report greater satisfaction with vehicle quality and reliability. This raises questions about whether Tesla’s superior charging network is inadvertently driving demand towards its competitors.
The Future of Affordable Teslas
Tesla once promised an affordable EV. Elon Musk initially aimed to build a $25,000 electric car, but this plan was scrapped for the Robotaxi concept unveiled last year. Autonomous driving capabilities, which are still in development, are seen as crucial to the value proposition of affordable EVs.
Recent reports suggest that an affordable Tesla, potentially called the Model Q, could arrive in the first half of 2025. According to leaks, the success of this model could depend on government incentives.
About the Author
Matt Crisara is the Service Editor.
