Investing.com -- Tesla (NASDAQ:TSLA) is pulling back on Cybertruck production, with output targets reduced across multiple lines in recent months, Business Insider reported Thursday, citing workers familiar with the matter.
Several production lines at the company’s Gigafactory in Texas are now operating at a fraction of their earlier capacity, and some Cybertruck teams have been cut by more than half, the report says.
“It feels a lot like they’re filtering people out,” one worker reportedly said. “The parking lot keeps getting emptier.”
Since January, Tesla has shifted some staff from the Cybertruck line to Model Y production, four workers told Business Insider.
The latest changes follow earlier adjustments in December 2024, when the company informed workers of revised Cybertruck schedules and asked them about their role preferences. At that time, Tesla also indicated plans to lower production targets for the first quarter of 2025.
According to estimates from Cox Automotive, Tesla sold 6,406 Cybertrucks in Q1 2025 — about half the volume of the previous quarter. Although CEO Elon Musk previously said the company had over a million reservations for the Cybertruck, fewer than 50,000 units had been delivered as of a March 20 recall.
In April, Tesla introduced its lowest-priced version of the truck, a rear-wheel-drive model priced at $69,990.
The production cuts come amid broader challenges for Tesla, which saw a 13% year-over-year decline in vehicle deliveries in the first quarter — a key indicator of overall sales performance.
Last month, Musk pledged during a White House press conference to double Tesla’s U.S. vehicle production over the next two years.
In February, as part of its biannual performance reviews, the company asked managers to assess which team roles were essential.
This review process, first introduced in early 2024, also included ranking employees on a one-to-five scale. A small number of staff were let go following the evaluations, the report said.