Tesla's highly anticipated Cybertruck has failed to live up to its hype, with sales numbers falling short of expectations. Despite CEO Elon Musk's claims of over 1 million reservations, the electric vehicle has only managed to sell between 35,000 to 50,000 units in 2024, according to estimates by Kevin Roberts, director of economic and market intelligence at CarGurus.

In October 2023, Musk tempered expectations about the Cybertruck's financial performance, stating that it would take around 18 months for the vehicle to become a significant positive cash flow contributor. However, the latest production and delivery numbers for 2024 paint a different picture. Tesla reported producing 94,105 vehicles in the "other models" category, which includes the Cybertruck, Model S, and Model X. Of these, 85,133 were delivered to customers. While the exact number of Cybertrucks sold is not disclosed, Roberts' estimate suggests that the vehicle has not become the large volume competitor that many had expected.

The Cybertruck's lackluster sales performance is a significant departure from Tesla's usual success story. The company reported its first year-over-year sales decline in over a decade, with the Cybertruck failing to contribute meaningfully to its growth in 2024. This is despite Musk's initial claims of massive demand, with over 1 million people reserving the vehicle. However, the reservation process was later changed to require a $100 deposit, down from the initial $1,000, which may have boosted reservations from people who were not serious about purchasing the vehicle.

The Cybertruck's rocky rollout, including viral videos of the vehicle getting stuck in snow or sand, numerous recalls, and Musk's controversial political views, may have also contributed to its poor sales performance. Despite initial strong sales, with the Cybertruck becoming America's best-selling electric truck in Q2 2024, the vehicle's popularity appears to have waned. Anecdotal reports of Cybertrucks piling up on used car lots, factory workers being told to stay home, and the decreasing price of used Cybertrucks all point to a vehicle that has failed to capture the market's imagination.

Industry analysts suggest that Tesla may have missed an opportunity to create a more affordable electric vehicle, which could have appealed to a wider audience. Instead, the Cybertruck's high price point, starting at around $90,000 for an all-wheel drive base model, may have limited its appeal. The vehicle's eligibility for the federal EV tax credit of $7,500 may also be short-lived, as the Trump administration is expected to kill the credit, with Musk's backing.

As Tesla looks to the future, the Cybertruck's poor sales performance is likely to pose significant challenges. With the Model Y being a top-five selling vehicle in the US, Tesla has demonstrated its ability to create high-volume vehicles. However, the Cybertruck's failure to replicate this success may force the company to reevaluate its strategy and focus on creating more affordable, appealing electric vehicles.

In conclusion, the Tesla Cybertruck's disappointing sales performance is a significant setback for the company. Despite initial hype and massive reservations, the vehicle has failed to live up to expectations, with sales numbers falling far short of what was anticipated. As the electric vehicle market continues to evolve, Tesla will need to adapt and create vehicles that appeal to a wider audience if it hopes to remain competitive.