Tesla has informed Cybertruck manufacturing staff to not report back to work for the following three days, in one other signal of demand points for the car that when touted tens of millions of preorders.
The information was reported by Enterprise Insider, who obtained an e-mail telling Cybertruck manufacturing employees at Tesla’s manufacturing facility in Austin, Texas that they “don’t have to report back to work” on “Tuesday, Wednesday, and Thursday this week (Dec. 3-5).” Employees will nonetheless be paid for his or her scheduled shifts.
Tesla didn’t give a remark as to why this shutdown is occurring, however Enterprise Insider stated 4 employees informed it that their schedules have been inconsistent for the final month.
On condition that it’s a vital time for Tesla deliveries, significantly of its flagship mannequin, the timing is suspect.
At the moment, Tesla is one among few EV producers that has offered fewer automobiles to date this yr than it did in 2023. Regardless of what you could have heard, EV gross sales are up considerably in 2024 – however Tesla was down within the first half of this yr.
The corporate had a good third quarter largely on account of rising China gross sales, however continues to be down in comparison with final yr.
In consequence, Tesla has began pulling out quite a lot of stops this quarter with the intention to shut out the yr with power. It has supplied bigger incentives for Tesla referral codes, lowered Mannequin Y lease pricing, and added extra flexibility to its leasing program.
And, most notably for at this time’s topic, simply at this time it lowered Cybertruck lease pricing – and this occurred lower than a month because the firm began leasing Cybertrucks in any respect.
It’s one other signal that Tesla isn’t seeing fairly as a lot demand as as soon as anticipated for the polarizing car.
After it was first unveiled in 2019, the Cybertruck managed to tally over 250k pre-orders in lower than every week, later reaching a peak of probably 2 million reservations in line with crowdsourced information.
However when the truck hit the street, issues didn’t go precisely as deliberate. The car got here out late and over finances, additionally lacking a few of the specs that had been initially promised. The primary out there “Basis Sequence” fashions began at $100k – a far cry from the promised entry-level $40k. It’s now out there at a base worth of $79k – however a promised future $61k base RWD mannequin was not too long ago eliminated that from Tesla’s web site.
Regardless of all that, it’s nonetheless the best-selling electrical pickup within the US and the third best-selling EV with a very excessive common transaction worth, bringing in a superb chunk of change for the corporate.
However however, demand appears a lot decrease than the sky-high expectations for the car. That ~2 million car backlog appears to have been depleted round October of this yr, when Tesla began permitting orders with no reservation. On the time, Tesla had offered someplace round 30,000 complete Cybertrucks.
This could possibly be the reason for the plant shutdown. Firms will usually pause manufacturing strains for just a few days or even weeks if manufacturing goes quicker than deliveries, in order to not have quite a lot of stock weighing down a steadiness sheet.
It’s doable that there are different causes – a line improve or some form of adjustments associated to the current Cybertruck inverter recall – however for the previous, the top of the quarter can be a greater time, and for the latter, one would suppose the adjustments would have been made nearer to when the issue was discovered (and would seemingly not shut down the entire line for 3 days).
And if there had been different causes, that’s normally the form of factor an organization sends its PR group out to debate, in order to not spook buyers with fears of waning demand. Since Tesla hasn’t made an announcement suggesting such, Occam’s razor means that manufacturing could also be outpacing demand, and the pause is to assist steadiness the 2.
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