Tesla to refund Cybertruck deposits as demand exceeds production

As Tesla faces a challenging situation with its Cybertruck production, the company will have to refund deposits from many customers, CEO Elon Musk revealed. The demand for the futuristic pickup truck has significantly lagged behind the high expectations set by Musk, leading to a stark contrast between the actual sales and the projected figures.

Following an announcement last week that Tesla was winding down the Cybertruck production at its Texas factory, Musk took to X to share the unfortunate news. He expressed his intention to produce as many Cybertrucks as possible before shutting down the line in about eight months. However, he emphasized that a considerable number of customers would have to be refunded their deposits.

Musk's statement came after he announced plans to add an additional production shift to fulfill outstanding Cybertruck orders prior to dismantling the production line by mid-2027. The resources would then be redirected towards the Cybercab, a vehicle that is pivotal to Tesla's autonomous-driving ambitions.

Despite the setback, Tesla managed to begin delivering the Cybertruck in late 2023, but its sales fell dramatically. According to Kelley Blue Book, US sales for the vehicle dropped by 48% to 20,237 units in 2023. This figure is far below Musk's earlier projection of 250,000 annual sales, showcasing the severe shortfall in demand for the Cybertruck.