Why did Tesla cancel the Cybertruck?
Apr 02,2022 | Chloe Lacour
Tesla CEO Elon Musk has acknowledged that manufacturing of the long-awaited Cybertruck has been canceled, in what must be the most startling news story of the year. What's the reason? The ongoing development costs have greatly outstripped the initial budget. The polarizing EV truck is no longer a feasible business case. "We're very sorry to say that we've made the difficult choice to cancel our Cybertruck," Musk tweeted. "I'm sure there will be a lot of dissatisfied customers, and all pre-orders will be returned as soon as possible. The decision was made in Tesla's and its future's best interests."
Despite the lack of a public relations department, internal insiders at the California-based manufacturer say Musk crunched the math and found that the already under construction Gigafactory in Austin, Texas will be better suited for Model Y and Model 3 production.
Austin was originally charged with producing both the Cybertruck and the Model Y, but demand for the Model 3 is rapidly increasing. Furthermore, the delayed launch and behind-the-scenes challenges with Cybertruck would have resulted in a significantly higher price tag than was previously announced.
When Musk unveiled the Cybertruck idea in 2019, he promised a starting price of $39,900 for the rear-wheel-drive vehicle. The all-wheel-drive version would cost an additional $10,000. Material costs have risen across the automotive industry in general in the two years since the coronavirus outbreak began. The current conflict in Ukraine is making conditions worse.