Tesla is offering significant discounts on its Cybertruck electric pickup truck as inventory piles up due to demand issues. The automaker faced challenges selling the Cybertruck in its first full year of production in 2024. To address the situation, Tesla took steps such as removing "Foundations Series" badges from some vehicles to sell them as cheaper regular models and homologating US Cybertrucks for the Canadian market.

Despite these efforts, inventory has continued to accumulate in both Canada and the US. However, Tesla's home market faces a unique situation, as the new 2025 Cybertruck is eligible for a 7,500federaltaxcreditforelectricvehicles,whilethe2024modelyearisnot.Tomovetheolderinventory,Teslaisnowofferingdiscountsofupto4,000 for regular Cybertrucks and $6,000 for Foundations Series models.

Estimates suggest that Tesla has thousands of Cybertruck units in inventory, and this new discount is double what it offered last month. However, it is unclear how much the tax credit will help Tesla sell the Cybertruck, as the vehicle is priced at the upper limit of the eligible range, and buyers face income restrictions. Additionally, the tax credit may soon disappear, as GOP senators have proposed a bill to eliminate it.

To address the inventory issue, Tesla may need to launch a single-motor version of the Cybertruck soon and focus more production capacity on that model. However, under the current demand situation, it appears that Tesla will not be able to meet its planned production capacity of 250,000 Cybertrucks per year.