Tesla shuts down Cybertruck production for 3 days at critical time for the company
Tesla has told Cybertruck production employees not to report to work for the next three days, in another sign of demand issues for the vehicle that once touted millions of preorders.
The news was reported by Business Insider, who obtained an email telling Cybertruck production workers at Tesla’s factory in Austin, Texas that they “do not need to report to work” on “Tuesday, Wednesday, and Thursday this week (Dec. 3-5).” Workers will still be paid for their scheduled shifts.
Tesla didn’t give a comment as to why this shutdown is happening, but Business Insider said four workers told it that their schedules have been inconsistent for the last month.
Given that it is a critical time for Tesla deliveries, particularly of its flagship model, the timing is suspect.
Currently, Tesla is one of few EV producers that has sold fewer cars so far this year than it did in 2023. Despite what you may have heard, EV sales are up significantly in 2024 – but Tesla was down in the first half of this year.
The company had a good third quarter largely due to rising China sales, but is still down compared to last year.
As a result, Tesla has started pulling out a lot of stops this quarter in order to close out the year with strength. It has offered larger incentives for Tesla referral codes, lowered Model Y lease pricing, and added more flexibility to its leasing program.
And, most notably for today’s subject, just today it lowered Cybertruck lease pricing – and this happened less than a month since the company started leasing Cybertrucks at all.
It’s another sign that Tesla isn’t seeing quite as much demand as once expected for the polarizing vehicle.
After it was first unveiled in 2019, the Cybertruck managed to tally over 250k pre-orders in less than a week, later reaching a peak of potentially 2 million reservations according to crowdsourced data.
But when the truck hit the road, things didn’t go exactly as planned. The vehicle came out late and over budget, also missing some of the specs that were originally promised. The first available “Foundation Series” models started at $100k – a far cry from the promised entry-level $40k. It’s now available at a base price of $79k – but a promised future $61k base RWD model was recently removed that from Tesla’s website.
Despite all that, it’s still the best-selling electric pickup in the US and the third best-selling EV with a very high average transaction price, bringing in a good chunk of change for the company.
But nevertheless, demand seems much lower than the sky-high expectations for the vehicle. That ~2 million vehicle backlog seems to have been depleted around October of this year, when Tesla started allowing orders without a reservation. At the time, Tesla had sold somewhere around 30,000 total Cybertrucks.
This could be the explanation for the plant shutdown. Companies will often pause production lines for a few days or weeks if production is going faster than deliveries, so as not to have a lot of inventory weighing down a balance sheet.
It’s possible that there are other reasons – a line upgrade or some sort of changes related to the recent Cybertruck inverter recall – but for the former, the end of the quarter would be a better time, and for the latter, one would think the changes would have been made closer to when the problem was found (and would likely not shut down the whole line for three days).
And if there were other reasons, that’s usually the sort of thing a company sends its PR team out to discuss, so as not to spook investors with fears of waning demand. Since Tesla hasn’t made a statement suggesting such, Occam’s razor suggests that production may be outpacing demand, and the pause is to help balance the two.
Charge your electric vehicle at home using rooftop solar panels. Find a reliable and competitively priced solar installer near you on EnergySage, for free. They have pre-vetted installers competing for your business, ensuring high-quality solutions and 20-30% savings. It’s free, with no sales calls until you choose an installer. Compare personalized solar quotes online and receive guidance from unbiased Energy Advisers. Get started here. – ad*
FTC: We use income earning auto affiliate links. More.
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the new Tesla Model S/X “refresh”, robotaxi service is coming, a new EV price war in China, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
FTC: We use income earning auto affiliate links. More.
Kia’s electric SUV has already become a hit in several overseas markets. The EV5 is now arriving as the first electric Kia to be assembled in Singapore, as it rolls out to new global markets.
Kia EV5 arrives as its first locally made EV in Singapore
Shortly after its introduction at the 2023 Chengdu Motor Show, Kia launched the EV5 in China, with prices starting at about 20,000 (149,800 yuan).
Kia is now seeing a full-on recovery in China, largely thanks to the new electric SUV. Its joint venture partner in China, Yueda Kia, ranked first in sales growth among JV brands.
In China, Kia sold over 248,000 vehicles last year, the first time it has crossed the 200,000 mark since 2020. The EV5 is made at Yueda Kia’s manufacturing plant in China and exported to overseas markets like Australia and Thailand.
In fact, the EV5 is currently the fourth best-selling EV in Australia this year through April, ahead of every BYD vehicle.
The EV5 is slightly smaller than the Tesla Model Y at 4,615 mm in length, 1,875 mm in width, and 1,715 mm in height.
After launching the EV5 in Singapore on May 28, Kia hit a milestone. The electric SUV arrives as Kia’s first locally assembled EV in the region.
The EV5 was officially launched during an event at Hyundai Motor Innovation Groupe Centre Singapore, where it will be made. It will join other Hyundai Motor electric cars, including the IONIQ 5 and IONIQ 6. Hyundai also builds the IONIQ 5 robotaxi here and exports it to the US.
Kia’s distributor, Cycle and Carriage, will sell the EV5 in three variants: Air, Earth, and a sporty GT-line. Two battery sizes will be available, 64.2 kWh and 88.1 kWh, providing range of 400 km and 540 km, respectively.
Prices for the base Air trim start at $194,000 (SDG), including COE. The Earth and GT-Line models start at $210,500 (SDG) and $260,000 (SDG) with COE.
Later this year, Kia will launch the global version of the EV5, which will be made at its Autoland Gwangju manufacturing plant in South Korea. It will be sold in overseas markets, including Europe and Canada, but not the US.
Kia confirmed the EV5 will be “exclusively for the Canadian market” in North America. It will be available in FWD and AWD powertrains. Two battery sizes will be offered: 60.3 kWh or 81.4 kWh, providing a range of up to 500 km (310 miles).
Source: Cycle & Carriage Kia Pte Ltd, The Straits Times
FTC: We use income earning auto affiliate links. More.
Do we smell a three-peat? The team at Ford Performance is once again competing at the annual Pikes Peak International Hill Climb, and this year is bringing a “Super” version of the all-electric Mustang Mach-E… At least we think there’s a Mach-E in there somewhere.
Pikes Peak—the “Race to the Clouds.” This annual event spanning 12.42 miles to an elevation of over 14,000 feet in the mountains above Colorado has been celebrated for over 100 years. While its hill climb is rooted in tradition and traditional vehicles, it has become an annual opportunity for EV engineers to showcase how much better all-electric models can be.
Last year, Rivian, Hyundai, and Ford Performance all impressed, with the former two automakers snagging records for their vehicle types, while Ford’s “F-150 Supertruck” took the “King of the Mountain” crown for the fastest climb of the day.
This past January, we learned that Ford Performance planned to defend its title at Pikes Peak with its third all-electric demonstrator in as many years. At the time, we only saw a sheeted vehicle that appeared to be relatively low with a massive spoiler, but the glowing front emblem left no doubt that it was a modified version of the Mustang Mach-E.
Today, Ford Performance unveiled the BEV it will use to climb Pikes Peak, which it is calling the Super Mustang Mach-E. Have a gander.
Super Mach-E will try to hold Ford’s Pikes Peak crown
Ford Performance shared the images seen above in an Instagram post with the following caption:
12 miles of mountain road. 156 turns. 14,115 feet of elevation. This is the @pikespeakhillclimb, and we’re bringing 6,125 lbs of downforce — and @romaindumas_official — to take it on with the Super Mustang Mach-E.
From the post, we’ve learned the Super Mustang Mach-E will be driven up Pikes Peak by none other than veteran French racer Romain Dumas. Dumas has a wealth of experience in some of the world’s largest (and longest) races, including the 24 Hours of Le Mans, Nürburgring 24 Hours, and the 24 Hours of Daytona.
He has been contracted to Ford Performance since 2022 and has won two of his five Hill Climb victories with the American automaker in the past two years (although the 2023 SuperVan victory was in the division and second overall). Could Dumas tally his sixth career victory at Pike Peak with a three-peat with Ford in the Super Mustang Mach-E?
Ford Performance and Romain Dumas have shown they can do it, so it’s a serious possibility. We will find out on June 22, 2025, when the 103rd running of the Pikes Peak International Hill Climb takes place.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway