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.
The best-selling Genesis vehicle in North America is getting even better. Genesis updated the GV70 and Electrified GV70, giving the already impressive SUV more style, added features, and a refined interior. Ahead of deliveries, we are getting our first look at the upgraded interior of the new Genesis GV70 Electrified.
Genesis unveiled the refreshed Electrified GV70 at the LA Auto Show two weeks ago, fine-tuning the electric SUV inside and out.
One of the first things you will notice is the revamped front end with a redesigned G-Matrix Grille. The charge port is now in the grille and comes exclusively with an NACS port that unlocks access to Tesla’s Supercharger Network.
The new model features the unmistakable Genesis two-line headlamps, now equipped with microlens array (MLA) tech for better sight at night or in low-light areas.
According to Claudia Márquez, chief operating officer of Genesis Motor North America, the new Electrified GV70 offers “all of the utility and interior refinement of a great SUV without sacrificing the fun-to-drive character that Genesis vehicles are known for.”
The interior now includes a massive new 27″ OLED driver and infotainment display. With improved voice recognition, drivers can adjust the windows, control HVAC settings, and more.
2026 Genesis Electrified GV70 interior adds luxury, style
Ahead of deliveries, we are already getting a sneak peek at the updated interior. The latest video from HealerTV reveals the new Genesis Electrified GV70 interior design.
You can see the massive 27″ OLED display at the center. The EV version also differs from the gas-powered GV70, including added ambient mood and a marble-like design on the door panels. The second row also gains ambient lighting and what appears to be a touchscreen for the heat and air controls.
Overall, the new Genesis Electrified GV70 interior maintains its lavish, clean look. Even little details like suede seats with white stitching and white seat belts add to the luxurious feel inside the cabin.
The design isn’t the only upgrade. With a bigger 84 kWh battery, up from 77.4 kWh in the previous model, the new Genesis Electrified GV70 is expected to feature more driving range.
Although no specs were given, the new EV models are expected to gain a few extra miles of range, similar to the updated Hyundai IONIQ 5. The 2025 Hyundai IONIQ 5 gets up to 318 miles of range with the same larger battery, compared to 303 in the previous version.
Check back soon for more details. The new Genesis Electrified GV70 is expected to arrive at US dealerships in the first half of 2025.
Ready to check out the electric Genesis luxury SUV for yourself? With the new 2026 models arriving soon, Genesis is offering up to $12,750 off the 2025 Electrified GV70 with lease discounts. You can use our link to find the best deals on the Genesis GV70 at a dealer near you.
FTC: We use income earning auto affiliate links. More.
Environment
EV tax credit is ‘catastrophically stupid,’ says incoming Ohio Senator and ‘car czar’ Bernie Moreno
Republican nominee for U.S. Senate Bernie Moreno addresses supporters at Brecksville Community Center on November 4, 2024 in Brecksville, Ohio.
Stephen Maturen | Getty Images
Republican Senator-elect Bernie Moreno, who made his living as a luxury car dealer before running against and defeating Democrat Sherrod Brown in the large manufacturing state of Ohio, said he is aiming to become the “car czar” within the Senate for the next Trump administration.
If Moreno is to fill that role, one of the first things he would target is eliminating the up to $7,500 tax credit that can be used to buy or lease an electric vehicle.
“At the end of the day, the $7,500 incentive is catastrophically stupid,” Moreno told CNBC D.C. Correspondent Emily Wilkins at the 2024 CNBC CFO Council Summit in Washington, D.C., on Wednesday.
Some senators, like Michigan’s Elissa Slotkin, who was criticized by her Republican challenger Mike Rogers for her support of the Biden administration’s embrace of electric vehicles, have looked to frame their support of the tax credit as a defensive move aiding the auto industry in its battle with Chinese auto manufacturers.
However, Moreno told Wilkins he views that position as “nonsense,” adding that the government should not “tell companies what to do and how to have a strategy.”
“If you don’t care what kind of car they drive, then let the markets work,” Moreno said. “We’re going to let the marketplace decide what kind of cars people should drive, and if it’s electric, great.”
Moreno pushed back against the argument that reversing Inflation Reduction Act incentives like the EV tax credit would effectively cede a key technology race to China. He said that if China is “dramatically ahead of us on EVs – good for them; we’re dramatically ahead of them in terms of combustion and hybrids.”
“So as a country, where do you prefer our industry to go? The places where we have a strategic advantage and not hand an industry over to China?” Moreno said. Moreno added that a change in U.S. law as it relates to the EV incentives is “not be handing it them” but a reflection that “consumers have spoken.”
“There’s never been a case in time where consumers have been more clear about what they want and don’t want,” Moreno said. “There’s people who EVs are great for them, and good for you, that car works for you, you should go out and buy it … But for a lot of people, they don’t want it.”
The euphoria that surrounded EV investment and sales has largely died out at major auto manufacturers, and automakers from Ford Motor and General Motors to Mercedes-Benz, Volkswagen, Jaguar Land Rover and Aston Martin have announced plans to scale back or delay some electric vehicle plans.
While electric vehicle sales are still expected to increase in the coming years, the boom in consumer demand for EVs that many car CEOs expected never materialized. “What we saw in ’21 and ’22 was a temporary market spike where the demand for EVs really took off,” Marin Gjaja, chief operating officer for Ford’s EV unit, told CNBC earlier this year. “It’s still growing but not nearly at the rate we thought it might have in ’21, ’22.”
Instead, automakers are shifting their focus to a more mixed offering of vehicles with lineups of gas-powered cars alongside hybrids and EVs, rather than more towards plans like the all-electric by 2035 mandate laid out by GM CEO Mary Barra.
“We’re going to let the marketplace work,” Moreno said. “We’re going to create an environment for car companies to be able to have a good tax environment, a good regulatory environment and good workforce … Let the marketplace work; stop the madness of government intervention in corporations and the marketplace will take care of it.”
GM and EVgo have now reached the milestone of installing more than 2,000 co-branded public DC fast chargers in the US.
The latest addition is a new fast charging station in Murrieta, California, off Interstate 215 in Riverside County. The station features five 350 kW fast chargers that can serve up to 10 EVs at once, and it’s near restaurants, coffee shops, and retail.
The GM and EVgo partnership has resulted in DC fast chargers at over 390 locations in 45 metro markets across 32 states, focusing on spots like grocery stores, shopping centers, and city centers. Their goal is to make charging convenient for those who can’t do it at home, such as renters or people living in apartments. For those folks, finding a nearby fast charger can be a game-changer.
The GM and EVgo partnership is on track to reach its goal of 2,850 DC fast chargers nationwide. It plans to build 400 at flagship locations in major markets, including California, Florida, New York, and Michigan.
It’s been fast progress, too. In August 2023, GM and EVgo brought their 1,000th charging stall online in the Chicago suburb of Woodbridge, Illinois. In just 16 months, they’ve doubled their shared EV footprint, including at highway rest stops along interstate routes.
Wade Sheffer, vice president of GM Energy, said, “Our collaboration with EVgo underscores our dedication to providing EV drivers with the best possible experience by expanding reliable fast charging infrastructure across the country.”
Read more: Tesla loses out to EVgo in Oklahoma’s NEVI EV charger rollout
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports8 months agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports3 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
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway