Tesla halts cheap Cybertruck orders as expensive versions pile up

 Tesla (TSLA) has stopped taking orders for its least expensive Cybertruck, hinting at demand concerns as more expensive Foundation Series trucks pile up in inventory.

Over the weekend, Tesla halted orders for the rear-wheel drive (RWD) version of the Cybertruck, which came in at around $61,000 and offered 250 miles of range. Now the "cheapest" Cybertruck on sale is the $99,990 all-wheel drive (AWD) version, with a range of 318 miles.

Per Tesla’s website, the Cybertruck AWD — which is the limited-edition Foundation Series model that will only be offered in the first year — can be ordered with immediate delivery in August or September. The higher-end tri-motor 'Cyberbeast' version, costing $119,900, can be ordered with delivery estimated in October at the earliest.

Halting orders of the least-costly Cybertruck trim is somewhat problematic, given that the company has around 1 million preorders for the vehicle, so says Elon Musk, and a goal of having an annual run rate of 200,000 Cybertrucks across all trims produced by the end of the year.

Tesla's Cybertruck order page as of 08/12/2024. (Tesla.com) (Tesla)

To be sure, the Cybertruck has sold well — 8,755 units in the second quarter, per Kelley Blue Book, compared to 4,466 Ford F-150 Lightnings and only 3,309 Rivian R1Ts. But it’s still a relatively low volume EV for Tesla, which delivered 1.8 million vehicles globally last year.

Sam Abuelsamid, principal transportation and mobility analyst at research firm Guidehouse Insights, said that Tesla has a history of announcing low-cost entry-level versions of its EVs and then delaying or offering them in very limited quantities.

Meanwhile, Abuelsamid believes there’s a demand issue, especially for the pricier Cybertrucks.

“Right now, I think what has happened is that most of the people that reserved have decided that they didn't want the truck at the higher price and reduced capability,” Abuelsamid said to Yahoo Finance, referring to the fact that when the Cybertruck was announced, it had better features and more attractive pricing. “Thus when it came time to convert reservations to firm orders, it seems a majority have canceled.”