The Cybertruck production has become a major problem for Tesla in 2025 because it has thousands of unsold vehicles despite its original million pre-order success. The company now refuses to accept Cybertrucks as trade-ins because its inventory contains 2,400 vehicles with a total value of approximately $200 million. This indicates declining market demand and internal company confidence.
The Cybertruck started as a future flagship model for Tesla before its popularity tanked. The Cybertruck reached its highest sales point with 5,308 units in September 2021, but demand quickly declined into a deep drop because of the extensive recall, which revealed only 46,000 vehicles were delivered. The steep 55% decrease in used Cybertruck value has made both Tesla dealerships and independent dealers avoid purchasing these vehicles.
Tesla reportedly requires their owners to file Lemon Law claims to get back their defective Cybertrucks instead of handling buybacks within the company. The company’s refusal to assist its vehicles has resulted in widespread customer dissatisfaction.
The public has turned against Tesla due to CEO Elon Musk’s support of former President Donald Trump and his backing of DOGE, which aims to destroy public institutions while Musk makes controversial political statements. The company’s actions have led to worldwide “Tesla Takedown” demonstrations across 250 cities, which prompted extensive boycotts.
The Tesla Model Y maintains its position as the top-selling new car worldwide, yet the company faces a deteriorating brand image. The brand’s value has declined as owners choose to separate from it while vehicle resale prices decrease throughout the market. The declining reputation of Tesla, together with excessive inventory, has created cracks in its once-unshakable market leadership position, which threatens the survival of the Cybertruck and potentially the entire company.
