- Tesla has stopped selling the $60,990 RWD Cybertruck, which was the cheapest version of the vehicle.
- The company has faced several challenges, including two recalls this year for issues related to accelerator pedals and faulty wiper blades.
OUR TAKE
The discontinuation of the base RWD Cybertruck and the price increases for the remaining models reflect Tesla’s strategy to position itself in a more premium segment of the electric vehicle market. However, the price hikes significantly affect potential buyers, as the cheapest option is no longer available. This could limit access for budget-conscious consumers and shift the target demographic towards higher-income buyers.
-Lia XU, BTW reporter
What happened
Tesla has ceased the sale of its base model, the $60,990 RWD Cybertruck, the most affordable option in the Cybertruck lineup. In conjunction with the discontinuation, Tesla has raised the prices of the remaining Cybertruck models. The AWD Cybertruck’s price has increased by $20,000, now costing $99,990, which raises the overall price floor of the Cybertruck lineup by $39,000. Thetri−motorversion, known as the Cyberbeast, has also seen a price hike, now priced at $119,990, up from $99,990 before August 6th.
Conversely, Tesla has improved its delivery timelines for the AWD Cybertruck, estimating that customers can expect their vehicles between August and September 2024. The Cyberbeast is projected for delivery between October and December 2024. Besides, Tesla has faced challenges this year, including two recalls related to faulty accelerator pedals and wiper blades, falling profits and ongoing federal investigations.
Also read: Tesla to fix 1.7 M vehicles in China amid safety concerns
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Why it’s important
Tesla’s recent adjustments to the Cybertruck lineup mark a significant shift in the electric vehicle market, reflecting both the company’s evolving strategy and the broader challenges facing the automaker. This change reflects broader market trends and production priorities. The RWD version may have struggled to meet demand or profitability targets, leading Tesla to focus on the more lucrative all-wheel-drive (AWD) and tri-motor variants. While the updated pricing may pose a challenge for some potential buyers, the accelerated delivery timelines offer a glimmer of optimism. It highlights the difficulties the company faces as it continues to innovate and expand its product offerings.
Tesla’s recent difficulties extend beyond pricing and delivery issues. The company has faced multiple recalls this year, including problems with accelerator pedals and faulty wiper blades. These issues reflect ongoing quality control challenges and have contributed to a period of heightened scrutiny for the automaker.
