Tesla suspends Cybertruck production
By ForGeeks Tesla is temporarily freezing Cybertruck production at its Austin plant. Assembly line workers have been told their shifts are canceled for three days. The decision, according to Business Insider, was a continuation of a series of slowdowns at the plant that have been occurring since October. Workers were increasingly doing more cleaning and training instead of assembly, and overtime bids dropped significantly.
Business Insider.
Cybertruck’s problems: declining demand and customer dissatisfaction
.
The Cybertruck’s production problems have been another blow to Tesla amid a general increase in competition in the electric pickup truck market. The model’s popularity, initially expected on a wave of hype, is now facing a harsh reality. While Tesla claims to have received more than two million pre-orders for the Cybertruck, the reality says otherwise. Customers have only made a minimum deposit of $100, and now it turns out that only 50,000 orders have actually been placed.
And now it’s clear that only 50,000 orders have actually been placed.
The situation is exacerbated by rejections of the model because of its performance. The promised 350-mile range is lower than advertised, and the price continues to rise despite low demand. For example, the most affordable configuration disappeared from the official website in August.
Accordingly, the model’s price has continued to rise despite low demand.
Massive recalls and user dissatisfaction
2024 was a record year for Cybertruck in terms of recalls. Six recalls were announced during the year, the most recent of which is related to a possible loss of power at the wheels due to a defective part. On social media, owners have complained of numerous technical issues ranging from oil leaks to sudden system failures. Some users have experienced complete machine failure, as happened to an owner from Canada whose car froze two hours after starting up.
Some users have experienced a complete breakdown, as happened to an owner from Canada whose car froze two hours after starting up.
Influence on Tesla and Elon Musk
.
These problems could have serious consequences for Tesla. The company expects to sell 250,000 Cybertrucks a year, but so far its sales through the first three quarters have totaled only 28,000 vehicles. That number is below the expectations of analysts, who predicted 48,500 for the year.
The company’s problems could have serious repercussions.
It’s especially painful for Ilon Musk, given a recent court ruling that stripped him of $100 billion in compensation. Amid falling Cybertruck sales, Tesla’s stock could come under additional pressure, dealing a blow to the company’s long-term outlook.
And Tesla’s stock could come under additional pressure, dealing a blow to the company’s long-term prospects.
