Elon Musk's Tesla launches cheaper Cybertruck

Tesla is lowering Cybertruck prices and introducing a cheaper variant in the US as demand for its electric pickup weakens and competition intensifies.

The company unveiled a new dual motor all wheel drive Cybertruck priced at $59,990.

It also reduced the price of its premium Cyberbeast model to $99,990 from $114,990.

The changes reflect Tesla’s broader strategy of lowering entry prices to attract buyers without waiting for a new mass market vehicle, while adjusting to slower electric vehicle demand and shifting market conditions.

Late last year, head of Tesla's Cybertruck program, Siddhant Awasthi, announced his departure from the EV maker.

Cheaper model

Tesla’s new dual motor all wheel drive Cybertruck introduces a lower priced option to its pickup lineup.

At $59,990, the model becomes the cheapest Cybertruck available and expands access to buyers who were previously priced out.

The move reflects Tesla’s effort to broaden its customer base and maintain momentum in the electric pickup segment.

The Cybertruck remains a key product for Tesla, but weaker demand has pushed the company to adjust pricing and product positioning.

Earlier this month, Tesla introduced a new all wheel drive version of its bestselling Model Y sport utility vehicle priced at $41,990.

The model sits above the Rear Wheel Drive Standard version and expands mid-tier options as Tesla focuses on attracting cost-conscious buyers across its vehicle lineup.

Price reduction

Tesla cut the Cyberbeast price by $15,000 to $99,990 from $114,990.

The change makes the high-performance version more accessible while aligning prices with current market demand.

The adjustment also suggests Tesla is discontinuing its Luxe Package, which previously included supervised Full Self Driving and free access to its Supercharger network.

Tesla had added the package in August last year when it increased Cybertruck pricing.

Removing bundled features allows Tesla to lower the base vehicle price and simplify its offering while reducing upfront costs for buyers.

Demand pressure

Tesla’s pricing changes come as electric vehicle demand slows.

The broader EV market has weakened since September, when the Trump administration ended the $7,500 federal tax credit that supported EV purchases.

Without the incentive, electric vehicles became more expensive for buyers, affecting affordability and slowing sales.

Tesla has increasingly relied on price cuts as part of its 2026 strategy to attract demand and maintain sales volumes.

The company also faces intensifying global competition as established automakers and newer EV companies expand their electric pickup and sport utility vehicle offerings.

Margin and production shift

Analysts have warned that a greater share of lower-priced vehicles could pressure Tesla’s margins unless offset by lower manufacturing costs or stronger revenue from software and services.

Tesla is also adjusting its production priorities. Elon Musk said last month the company would end production of its Model S sedan and Model X sport utility vehicle.

Tesla plans to use the space in its California factory to manufacture humanoid robots instead.

The shift reflects Tesla’s broader strategy to balance vehicle production with new technology investments while responding to changing demand.