Why Tesla's Cybertruck Will Rapidly Depreciate From Now On

Well, it appears that not as many people as previously thought. Could it be the price? Perhaps. But the issue runs much deeper than that.

Last year, rumors said that Tesla was sitting on close to two million (refundable $100 or $250) pre-orders for the brand's first all-electric pickup truck. Thanks to a major recall for the Gigawiper motor, we learned that the world's most valuable automaker has produced close to 11,700 units since November 2023. That translates into a monthly manufacturing capacity of around 1,670 units.

The good news is that people responsible for this battery-powered wannabe workhorse keep improving it. Customers who got lemons or models with too many defects managed to obtain replacements or had their rides fixed in a timely manner. The service centers are receiving the parts they're asking for, and that's encouraging to know.

But let's rewind for a little bit. Five years ago, when Tesla was slowly coming out of a very bad financial situation because of the Model 3 production ramp-up, the company's CEO said that a new vehicle would join the marque's line-up – a pickup truck. And what a looker it was! It came with everything it needed for a grand reveal, including a stunt where the CEO and the Chief Designer broke two of its windows with steel balls.

Questionable moves, palpable results

That type of weird promo that attracts bad (but free) publicity continued even with the official launch of the production-ready Cybertruck. The CEO claimed that the pickup truck was faster than a 911 while towing an identical 911, which, simply put, wasn't true.

Then, there was the price debacle. The EV was supposed to have a starting cost of $40,000 for the rear-wheel-drive version with 250 miles of range, $50,000 for the dual-motor Cybertruck with 300 miles of range, and $70,000 for the tri-motor unit with over 500 miles of range. Sometime in 2021, Tesla removed the prices from its website and only left the "Reserve Now" button plus a few details.

Last year, the CEO confirmed that the pickup truck would have the following MSRPs:

• $61,000 for the single-motor;
• $80,000 for the dual-motor;
• $100,000 for the tri-motor (aka the "Cyberbeast).

To make matters worse and squeeze as much money as possible from enthusiastic early customers, the brand created the Foundation Series special edition for $20,000 on top of the MSRP. Also, it only produced the dual- and tri-motor units.

Remember the fully loaded Model S Signature Series. They were pretty sought-after at first. How many people remember them now?

The weirdness didn't stop there

Tesla was supposed to have a 500-mile Cybertruck. Sadly, that doesn't exist to this day. In an attempt to save face, the marque announced a $16,000 range extender that went into the bed and reduced the payload. Nobody has received it yet, even though over 20 percent of customers have paid for it in advance. In theory, it should add around 130 miles of range.

Elon Musk also promised that the EV would have an exoskeleton, which would have been an interesting and innovative development. Unfortunately, that was also an exaggeration. The steel support structure isn't a part of the truck's exterior. The Cybertruck, no matter the version, is just an edgy Model Y with stainless steel panels that can rust unexpectedly easily.

But all that didn't matter. Not even the fact that people who got their hands on low-VIN units reported an unexpectedly slow charging performance and a reduced towing range. The look alone was enough to convince thousands to go through with the acquisition. Many chose to finance or pay for the EV outright because the automaker refused to offer a lease option.

I don't know about you, but to me, that's an obvious statement: the marque doesn't want these early units back. It's even weirder when you remember that the Model 3, the Model Y, the Model S, and the Model X do not have a lease buyout option.

But for those who got the all-important email, buying a Cybertruck made a ton of sense. Many owners have rented out their pickup trucks, and some of them make around $5,000 per month due to this side hustle. The EV paid for itself.

Not everyone is fortunate

For the unlucky few who believed that a six-figure battery-powered triangle on wheels with a small bed and a tonneau cover that blocks the rear windshield once it's closed would be an ideal vehicle for their mobility needs, there weren't many options available. Apart from, of course, selling their Cybertrucks or Cyberbeasts. Even YouTubers gave up on them.

Besides a private sale or a great trade-in offer at a dealership, their best shot was to try their luck on a live auction platform. So, for many, Bring a Trailer and Cars and Bids were their only way out.

The first Cybertruck sold at auction happened on Bring a Trailer. A 1,600-mile dual-motor unit found a new owner for $160,000. On Cars and Bids, the top bid for a similar pickup truck reached the $158,000 mark, but it wasn't enough. The seller wanted more, and they did not reach an agreement with the person who offered them the most money. Both of those auctions happened in late April.
Earlier the same month, a tri-motor Cyberbeast Foundation Series got away with Sotheby's help for $262,500.

A couple of days ago, two other dual-motor Cybertrucks tried to find a new home through the abovementioned platforms. On Cars and Bids, the 200-mile example convinced one person to part with $97,500, but the seller didn't believe it was enough. On Bring a Trailer, the six-figure threshold wasn't broken. However, the owner refused to get $100,000 for their edgy EV.

It certainly seems like the hype is gone, and people who believed they would flip their truck for a profit must deal with a new reality: their pointy ride isn't that valuable anymore. It is unfortunate that only seven months have passed since this Tesla was introduced to the world, and it has depreciated so badly, but it's about to get way worse.

An imminent downtrend

Tesla is getting ready to put non-Foundation Series units into production, which means the MSRPs will drop to the actual values displayed on the automaker's website sans the classic accompanying fees.

Moreover, many businesses can take advantage of the Section 179 deduction, which enables them to claim up to $28,900 (or even more in some cases) for a Cybertruck. Keep in mind that this is not a federal EV tax credit-like discount. It's about accelerated depreciation. It reduces taxable liability.

Besides all that, there are a couple of other issues with the EV. Although it has a battery built on the 800V architecture, it cannot take advantage of its maximum charging capabilities. Oh, it also doesn't have FSD Supervised activated.

Many people initially admired the pickup truck, but most now consider it an in-your-face toy, even though the owners might just use it to commute. You might catch a glimpse of people in your community giggling or pointing fingers at your truck, but not because it's as exciting as a Lamborghini or a Ferrari.

The Cybertruck might have a courageous exterior design and a few features that make it interesting, but it is slowly becoming a nuisance rather than something everyone will admire once they see it. Owners could also start to feel the "neon yellow Aventador" effect, which shows that a toy will always remain a toy. You like driving something with virtually no practicality and a color that will steal the spotlight everywhere it goes until you get tired of the unnecessary attention.

It is my assumption that Tesla rushed to bring this battery-powered pickup truck to market so Rivian, Ford, and GM wouldn't dominate it. The vehicle could also be nothing more than a testbed for technologies such as the 800V battery architecture, the 48V internals, the steer-by-wire, and rear-wheel steering. It wouldn't be the first time the brand used its customers to improve its products.

Finally, let's hope that existing and upcoming Cybertruck owners will pay for GAP insurance. They might need it.