Tesla has officially ceased production of the rear-wheel-drive (RWD) variant of its Cybertruck, a mere five months after its initial launch. This decision reportedly stems from disappointing sales figures for the most affordable version of the electric pickup.
The discontinued RWD model, which was priced at $69,990, boasted an estimated range of 362 miles per charge, along with reduced ground clearance and a towing capacity of 7500 lbs, running on smaller 18-inch wheels. With its removal from the lineup, Tesla's official website now only lists the standard all-wheel-drive (AWD) model and the high-end Cyberbeast trim, which retails at $114,990 and includes enhanced features.
This strategic shift occurs amidst broader challenges for the automaker. Reports earlier this year indicated a significant inventory of over 10,000 unsold Cybertruck units in the U.S., despite Tesla's efforts to reposition the vehicle as a lifestyle product to attract a wider audience of pickup truck owners. Furthermore, Tesla's dominance in the U.S. electric vehicle market has wavered, with its market share falling below 40% for the first time since 2017. European sales have also experienced a notable decline of over 40%, even as competitor BYD sees a surge in its European market presence. However, China continues to be a robust market for Tesla, with its new Model Y L, a six-seater version of the Model Y SUV, accumulating 120,000 orders since its launch last month, contributing to a strong week of registrations despite an overall year-over-year sales dip.
Tesla's decision to discontinue the Cybertruck RWD model highlights the dynamic and competitive nature of the electric vehicle market. Companies must constantly adapt their product offerings to meet consumer demand and market trends. This situation underscores the importance of continuous innovation and strategic positioning to maintain leadership in a rapidly evolving industry, demonstrating that even established players face challenges and opportunities for growth.