Tesla Discontinues Entry-Level Cybertruck, Raising Starting Price




Tesla has officially discontinued the cheapest rear-wheel-drive (RWD) version of its Cybertruck, just five months after it became available for order. This decision effectively increases the entry barrier for prospective buyers by approximately 14%, with the all-wheel-drive (AWD) model now serving as the most affordable option at $79,990. This change comes amidst a period of reevaluation for Tesla, as the company navigates production complexities and shifts its focus towards more premium offerings, potentially influenced by the phasing out of certain EV tax credits.
The RWD Cybertruck was introduced as a more accessible alternative, yet it came with significant compromises compared to its AWD counterpart. It featured a single rear motor, resulting in reduced payload and towing capacities, and a notably slower acceleration time to 60 MPH. Furthermore, the base model lacked a tonneau cover and adaptive air suspension, instead utilizing 18-inch wheels versus the AWD's standard 20-inch wheels. Inside, the RWD variant offered cloth seats without ventilation, fewer speakers, and omitted the rear screen, highlighting a stripped-down approach that may not have resonated with the vehicle's unique market position.
The discontinuation of the entry-level Cybertruck could be a tactical decision by Tesla to simplify manufacturing processes. By reducing the number of distinct configurations, the company might aim to achieve higher production efficiency and better profit margins. This strategy aligns with past practices where Tesla has limited features through software rather than extensive alterations to its production lines, suggesting a preference for uniformity in hardware. The company's recent price adjustments for its Model S and X, which saw a mandatory 'Luxe Package' bundled in, further indicate a broader shift towards a premium pricing strategy across its high-end vehicle lines, moving away from more budget-conscious options.
Despite initial projections of substantial sales, with estimates reaching up to 250,000 units annually and over two million reservations, the Cybertruck's performance has been inconsistent. Deliveries for models including the Cybertruck, Model S, and Model X peaked in Q4 2024 but have since seen a significant decline, with a 66% drop in Q2 2025. This suggests that the vehicle has struggled to meet market expectations, possibly due to a discrepancy between its promised specifications and actual delivery, as well as broader criticisms leveled at Tesla's leadership.
For those interested in a robust electric truck, the market still offers alternatives such as the Chevy Silverado Work Truck and the Ford F-150 Lightning, which are priced lower than the current entry-level Cybertruck. Tesla's pivot signals an intent to reposition the Cybertruck and its other premium vehicles in a higher market segment, prioritizing luxury and advanced features over initial affordability. This move reflects a evolving strategy for Tesla as it seeks to stabilize sales and streamline its product portfolio in a competitive electric vehicle landscape.