Cybertruck sales fall short of over 1 million reservations

Elon Musk claimed at the end of 2023 that Tesla received over a million reservations for the Cybertruck. However, sales have been disappointing, with fewer than 50,000 trucks sold in over a year. This figure is much lower than Musk's expectations, which had suggested sales could reach 250,000 annually. The Cybertruck's latest recall, relating to the use of the wrong glue, highlighted these sales struggles. Tesla has only sold about 46,000 of its heavy electric pickups since their launch, revealing a conversion rate of just under 5% from reservations, which is low compared to industry standards. Experts say car companies typically get 2 to 16 percent conversion rates on deposits. Tesla's manufacturing facility in Texas is designed to produce 125,000 Cybertrucks yearly, but slow sales have led to a shift in focus to the more popular Model Y. Analysts note that Tesla’s high valuation is based on future vehicle sales rather than current production numbers. Even as Musk projects grand plans for new technology and robots, he faces tough competition and must deal with recent negative headlines impacting sales. Sales have dropped significantly, with February showing a 32.5% decrease compared to January. Factors such as rising prices and production issues are leading to challenges. Original launch prices promised around $39,900, but the starting prices have now soared to $60,990. Many former reservation holders are opting out after delays and price increases. Some potential owners feel that Tesla's reliability has come into question due to ongoing quality issues and recalls. Additionally, discounts and incentives are now being offered to boost sales. Despite the attention the Cybertruck initially received, its unconventional design and high price may limit its appeal to mainstream consumers. Analysts are now predicting lower growth rates for Tesla, linking this partly to the Cybertruck's poor performance. Concerns over its high stock valuation have emerged, with experts warning it could significantly drop if sales do not improve. Musk himself has indicated that the Cybertruck has been a burden on the brand, noting that the company's forecasts may not hold up under current market conditions.