Tesla lowered the production target for Cybertruck, with some employees transferred to the Model Y production line.

According to foreign media reports, Tesla is currently scaling back production targets for its Cybertruck electric pickup and transferring some workers to other production lines. Amid multiple recalls and investor concerns about Tesla's future development, sales of this model have significantly declined. To boost market performance, Tesla has launched sales promotions, including car purchase discounts and a lower-priced entry-level Cybertruck model.

It is reported that due to market sales challenges, Tesla has begun to adjust its capacity plans for the Cybertruck model.

Sources said that over the past few months, the EV manufacturer has lowered production targets. Tesla has also streamlined some Cybertruck production lines, with some teams seeing a reduction of more than half. Since January this year, some Cybertruck factory workers at the company's Texas Gigafactory have been transferred to the Model Y production line.

An internal employee revealed, "The situation is clearly about streamlining, and the employee parking lot is increasingly empty."

It is reported that Tesla initiated related adjustments as early as December last year, and after conducting a survey on employee work preferences, it has reassigned some personnel to the Model Y production line.

According to data from Cox Automotive, Cybertruck sales in Q1 2025 dropped significantly to 6,406 units, compared to 12,991 units in the previous quarter. Since the model began production at the end of 2023, Tesla has sold over 46,000 Cybertrucks. This sales downturn aligns with Tesla's overall market performance, with global deliveries in Q1 2025 declining by 13% YoY.

Tesla did not respond to requests for comment on the above reports.

Additionally, Tesla's Cybertruck recently faced another quality issue. After suspending deliveries in March due to a side panel detachment risk, the company announced a full recall, marking the 8th recall since the model's production began 15 months ago. In February, Tesla also recalled 375,000 other models globally due to steering system issues.

To address the sales decline, Tesla has introduced a lifetime free charging benefit for the $95,000 Foundation Series Cybertruck, saving approximately $50 per charge. This benefit is only applicable to specific owners, excluding ride-hailing vehicles.

Tesla recently launched a cheaper version of the Cybertruck, with a starting price of around $70,000. While this adjusted model is about $10,000 cheaper, it changes the vehicle from all-wheel drive to rear-wheel drive and removes features such as air suspension and vegan leather seats.

However, some investors do not believe this adjusted model is attractive enough to drive sales.

Gary Black, a Tesla investor and managing partner at Future Fund, stated on social media, "Given that the new model is only $10,000 cheaper than the four-wheel-drive version and has removed many features, we expect no significant increase in Tesla's deliveries with the addition of the rear-wheel-drive Cybertruck."

Black predicts that Tesla will deliver only 20,000 Cybertrucks in fiscal year 2025, compared to 37,000 in fiscal year 2024.

Since Tesla CEO Musk served in the Trump administration, the company has struggled to perform well. Some analysts say they believe Musk's responsibilities at the Department of Government Efficiency (DOGE) have distracted the CEO from Tesla, dampened investor confidence, and, in addition to the sales decline, contributed to a 43% drop in Tesla's stock price since Trump took office.

Despite this, Musk remains optimistic about Tesla's future, pledging in March to double Tesla's production in the US within the next two years.