In a move that has surprised early reservation holders, Tesla has removed the most affordable version of its angular electric pickup truck from its US configurator, just months after its first deliveries began.
By Michael Chen | October 26, 2023 | Electric Vehicles
The landscape of the electric pickup truck war just shifted. Tesla has quietly discontinued the rear-wheel drive (RWD) variant of its controversial Cybertruck in the United States, a model that was touted as the entry-point for consumers at a promised starting price of around $60,000.
The trim simply vanished from the official online configurator this week, leaving potential buyers with only the all-wheel drive (AWD) and high-performance "Cyberbeast" tri-motor options, which start at $79,990 and $99,990, respectively. The move suggests that Tesla's product strategy for its halo vehicle is already evolving in response to market realities.
The Promise vs. The Reality
When CEO Elon Musk first unveiled the Cybertruck in 2019, the prospect of a sub-$40,000 electric truck (a price that was later walked back) sent shockwaves through the automotive industry. Even as estimates rose, the RWD model remained a key part of the value proposition, targeting a broader audience with a lower price and an estimated range of 250+ miles.
However, the reality of production, inflation, and a fiercely competitive truck market appears to have forced Tesla's hand. Industry analysts point to two primary reasons for the model's abrupt cancellation: perceived poor value and weaker-than-expected demand for the base configuration.
Why Axe the Entry-Level Model?
1. The Value Proposition Problem
The single-motor RWD Cybertruck was positioned at the bottom of the lineup, but its specs paled in comparison to its siblings. With an estimated 0-60 mph time of 6.5 seconds, it was significantly slower than the blisteringly quick AWD and Cyberbeast models. Furthermore, its towing capacity was expected to be the lowest of the trio.
"When the AWD model offers over twice the horsepower, significantly better performance, and all-weather capability for a $20,000 premium, the base model starts to look like a poor value," explains automotive industry analyst Jessica Rivera. "Tesla likely found that the vast majority of orders were flooding in for the higher-margin AWD version, making the RWD trim economically unviable to produce."
2. Weak Demand and Production Simplification
Early data and configurator trends suggested that consumer interest was overwhelmingly concentrated on the more capable and expensive variants. For a vehicle that has faced production "hell," as Musk himself has admitted, streamlining the manufacturing process to focus on fewer, more profitable configurations is a classic automotive industry tactic.
Producing a single powertrain simplifies the assembly line, reduces complexity in the supply chain, and allows Tesla to ramp up overall output more efficiently. This is crucial for Tesla to start meeting the immense backlog of reservations for the Cybertruck and begin generating a positive cash flow from the program.
The official word from Tesla has been minimal, as is often the case with such changes. For more detailed reporting on the initial discovery and Tesla's quiet removal of the trim, a recent report from Drive Tesla Canada highlights the swiftness of this decision.
What This Means for the Market and Consumers
The elimination of the RWD Cybertruck solidifies its position as a premium, niche product rather than the mass-market revolution once promised. Its starting price is now firmly anchored near $80,000, placing it in direct competition with the high-end trims of the Ford F-150 Lightning, Rivian R1T, and GMC Hummer EV.
For the hundreds of thousands of reservation holders who were holding out for the most affordable model, the decision is a disappointment. Many will now have to decide whether to stretch their budget for the AWD version, place a bet that Tesla might reintroduce the model later, or simply cancel their reservation.
This strategic pivot underscores the challenges of bringing a radical new vehicle to market. While the Cybertruck's design and capabilities have generated unparalleled buzz, translating that into a sustainable and profitable business model requires adaptability. By focusing on high-demand, high-margin vehicles first, Tesla is following a playbook it used with the Model 3 and Model Y, where longer-range, all-wheel-drive versions were prioritized ahead of the standard trim.
For those still eager to get behind the wheel of the stainless-steel behemoth, the options are now clearer, albeit more expensive. You can explore the available configurations and place an order directly on the official Tesla website.
The evolution of the Cybertruck lineup is far from over. Only time will tell if a more affordable variant makes a return once production has been fully optimized and scaled. For now, Tesla's statement is clear: the future of the Cybertruck is all-wheel drive.
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