Tesla Discontinues Cybertruck RWD Variant 5 Months After Launch Amid Poor Sales: Report
Tesla has discontinued the rear-wheel drive variant of the Cybertruck just five months after its launch due to poor sales. The long-range trim, priced at $69,990, offered a range of 362 miles but struggled to attract buyers, with over 10,000 unsold units reported. Tesla's market share in the U.S. has dropped below 40%, and sales in Europe have declined by 40.2%. However, the company continues to perform well in China, with strong demand for the new Model Y L.
Tesla Inc. TSLA has discontinued the rear-wheel drive trim of the Cybertruck as the automaker grapples with poor sales figures.
Most Affordable Cybertruck Variant Discontinued 5 Months After Launch
The company discontinued the most affordable variant of the Cybertruck, the long-range rear-wheel drive trim, five months after launching it in April, Electrek reported on Saturday.
Tesla did not immediately respond to Benzinga’s request for comment.
The trim retailed for $69,990 and offered an estimated range of 362 miles on a single charge. The trim offered a reduced ground clearance, 7500 lbs towing capacity, as well as riding on smaller 18" wheels.
Currently, the Tesla website only shows the standard all-wheel drive trim as well as the range-topping Cyberbeast trim that retails for $114,990 and includes additional features.
Cybertruck’s Unsold Inventory
The news follows reports earlier this year that suggested that Tesla was sitting on over 10,000 unsold units of the Cybertruck in the U.S. This is despite a shift in marketing strategy to position the Cybertruck as more of a lifestyle product to make it more appealing to traditional pickup truck owners.
Tesla Losing Ground In The US, Europe
Tesla's market share in the U.S. fell below the 40% threshold for the first time in almost eight years, since October 2017. The EV giant currently holds 38% of the EV sector in the U.S. Tesla also launched $0 down leases in the U.S. last month on its used Model 3 and Model Y units, a first for the company.
The automaker's European sales have been lackluster too, with Tesla recording a 40.2% decline in the region. However, Tesla's fall coincides with rival BYD Co. Ltd.'s BYDDY BYDDF 225% surge in Europe.
China Remains A Stronghold For Tesla
Despite the poor sales globally, China has remained a strong market for Elon Musk's EV giant with the newly-launched Model Y L, a six-seater version of the Model Y SUV, racking up 120,000 orders since its introduction last month.
Tesla also recorded 14.3k new insured registrations in China during the first week of September. The week was the best week of the quarter so far. However, Tesla sales are still down 12.1% YoY in China.
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