Tesla is throttling down Cybertruck production as it shifts workers to Model Y production because inventory of the electric pickup truck is piling up.

The automaker had planned a production capacity of 250,000 Cybertrucks per year at Gigafactory Texas, and CEO Elon Musk said he could see this being ramped up to 500,000 per year.

However, things are not going in that direction.

After having sold roughly 40,000 Cybertrucks in its first year of production (2024), Tesla is already throttling down Cybertruck production, according to documents obtained by Business Insider.

The report states that Tesla asked employees working on Cybertruck production to switch to Model Y production for “business needs”:

“As we continue to assess schedules to meet business needs, we’ll be making a change to Model Y and Cyber schedules and we want to ensure that your preferences are considered.”

The moves come as Tesla is facing mounting Cybertruck inventory and has started to directly discount them by $1,600 and even add “free supercharging for life” on some inventory:

Last month, we reported that Tesla went as far as buffing out “Foundations Series” badges on some Cybertrucks to sell them as regular cheaper ones and homologated US Cybertrucks for the Canadian market to try to move them.

With the release of its sales report for Q4 2024, Tesla showed that Cybertruck deliveries in Q4 are flat or even down compared to Q3 despite having launched cheaper versions of the vehicle during the quarter.

The move of workers from Cybertruck to Model Y also comes as Tesla is preparing to build a new version of the Model Y at Gigafactory Texas after launching it in China.

However, Tesla usually doesn’t launch a new production at the detriment of another vehicle program, but this time, it is convenient because of the Cybertruck’s demand issues.

Three entrepreneurs in a sugar factory

The Williamsburg community in the Brooklyn borough of New York, where the small Merit team is based, has been transformed over the past few decades from a former industrial district, first into a vibrant arts and music center and more recently into an upscale neighborhood filled with new high-rise apartment buildings and luxury shops.

But the old Domino factory, two blocks north of the Williamsburg Bridge, remains a relic of the past. The refinery was the last operating industrial facility on the waterfront before closing in 2004.

After years of neglect, the building has been reimagined as a hub for modern innovation, with panoramic views of Manhattan visible through the original brickwork. The facility opened as a modern office complex in 2023, and now offers carved-up startup space as well as full floors for bigger organizations.

Ragsdale says the building’s history is important to the startup’s story.

Merit Systems co-founders Ryan Sproule, Sam Ragsdale, and Mason Hall coding in their Brooklyn office.

Sam Ragsdale

The name Merit Systems is a “throwback to the companies of the ’60s or the ’70s, which had very industrial names that explain exactly what they do,” Ragsdale said. Merit is meant to be a straightforward description of the company’s mission.

There’s also a coveted view of Manhattan.

“You can see the skyline through the old brick in the windows,” Ragsdale said.

Inside the office, there are four desks and eight chairs. Whiteboards covered in notes and math equations fill the only corner of the office currently in use, while 3D printers from Ragsdale’s home produce prototypes, including the company’s tesseract logo.

“We’re definitely not using all 3,000 square feet,” said Ragsdale. “We’ll get there eventually.”

Merit plans to add seven new hires in the coming months and is specifically looking for people who want an in-person work culture.

“The idea flow between people when you’re sitting next to them is really important,” says Sproule. “We don’t really believe in the fully decentralized remote work model for an early-stage company.”

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Genesis officially launched the updated Electrified GV70 in Korea, starting at just over $50,000. The new electric SUV now has a bigger battery for more driving range, added luxury, and even more style. Check out the new Genesis GV70 EV below.

The midsize luxury electric SUV was first launched in Korea in March 2022. Less than three years later, the GV70 EV is returning with “a more elegant and luxurious look.”

Genesis launched the new Electrified GV70 on Thursday in its home market. It improves on the current model in nearly every aspect, including added features, a new battery, and an improved exterior design.

Like the updated GV60, revealed earlier this month, the new Electrified GV70 features a redesigned front and rear end. The crest grille now includes a Gradient G-Matrix pattern, adding to its already sporty look. Genesis also added its new Micro Lens Array (MLA) tech to the signature Two Tone headlights.

The refreshed GV70 gains new 20″ matte dark gray wheels while the 19″ wheels have also been updated, “creating a strong yet sophisticated” look.

Inside, the electric SUV “has been reborn” with added luxury and space. It now features Genesis’ new 27″ connected car Integrated Cockpit (ccIC) display system and touchscreen HVAC panel.

For a more luxurious feel, Genesis added an exclusive “Milky Way Pattern Mood Lighting” and other elements, such as a crystal electronic shift dial and horn cover with its branding.

Genesis reveals new Electrified GV70 prices and specs

Powered by its fourth-gen batteries, the new Genesis Electrified GV70 now has even more driving range. With an 84 kWh battery pack, the updated model now gets up to 423 km (263 miles) range. That’s up from 400 km (249 miles) in the outgoing model with a 77.4 kWh battery.

The new Electrified GV70 can also charge faster with its increased battery capacity. With a 350 kW fast charger, it can charge up to 80% in just 19 minutes.

To improve the drive, Genesis added new Highway Body Motion Control tech to minimize the jerk when suddenly braking or accelerating. The rear suspension also features a new hydro bushing, which was previously only on the front suspension, to reduce vibration.

Like several other new Hyundai Motor Group (including Kia and Hyundai) EVs, the Electrified GV70 now includes a Virtual Gear Shift function to replicate the feeling of a gas car shifting.

Despite the updates, the new Genesis Electrified GV70 starts at just 75.2 million won, or around $51,700 in Korea, with EV tax benefits included.

In the US, the 2025 Electrified GV70 starts at $66,950 with up to 236 miles range. Although prices are not expected to change drastically, the updated 2026 model is expected to have upwards of 250 miles driving range.

Genesis revealed the updated GV70 EV for the US at the LA Auto Show in November. It now includes an NACS port for accessing Tesla Superchargers. The vehicle will begin arriving at US dealers in the first half of 2025.

With the updated 2026 models en route, Genesis is offering up to $16,750 off the 2025 Electrified GV70 with lease bonuses. Ready to take advantage of the savings? You can use our link to find deals on the Genesis GV70 in your area today.