Tesla CEO, Elon Musk has officially launched the long-awaited entry-level Cybertruck: a rear-wheel-drive (RWD), single-motor variant priced at $69,990.
However, the new model is drawing criticism from Tesla fans, analysts, and investors alike, who argue that the modest $10,000 discount compared to the dual-motor version comes at the cost of significant feature cuts and diminished value.
A Price Cut, But at What Cost?
When Musk first unveiled the Cybertruck in 2019, the base model was expected to start at $39,990, just under $50,000 in today’s dollars. Fast forward to 2025, and the RWD Cybertruck’s starting price is nearly 75% higher, raising questions about its affordability and market appeal.
The new version, expected to begin deliveries by June, loses a host of popular features:
- No all-wheel-drive system; Only one motor powers the rear axle.
- Air suspension removed; Replaced with adaptive coil dampers that reduce ground clearance and towing capabilities.
- Interior downgrade; Premium vegan leather seats are swapped for cloth, with no seat ventilation.
- Tech omissions; Rear console display and motorized hardtop tonneau are absent.
- Utility features removed; The 240V power outlet in the truck bed is no longer available.
Despite boasting a longer 350-mile range (25 miles more than the AWD version), that figure only holds with smaller 18-inch wheels. Opting for 20-inch wheels ($3,500 upgrade) reduces the range to 331 miles.
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Some Tesla enthusiasts believe the bare-bones RWD Cybertruck exists primarily to nudge customers into upgrading to the more expensive AWD model.
“The AWD trim for $10k more is absolutely worth the extra cost compared to the new Cybertruck,” said Sawyer Merritt, a well-known voice in the Tesla community.
Poor Value Dampens Investor Outlook
The financial community has echoed these concerns. According to Gary Black, managing partner of The Future Fund and a Tesla investor, the new Cybertruck version is unlikely to boost sales.
“We expect little if any incremental volume will be added to Tesla delivery estimates as a result of the CT RWD addition,” Black posted on X (formerly Twitter).
He estimates that Tesla will deliver only 20,000 Cybertrucks in 2025, down from 37,000 in 2024, despite a planned manufacturing capacity of 125,000 units annually at Tesla’s Texas Gigafactory.
“Given just a $10K price discount vs the CT AWD version and the removal of many CT AWD features, we expect little if any incremental volume,” Black added. https://t.co/sbzIE0AojM
Cybertruck’s Rocky Start and Recall History
Since its production began in late 2023, the Cybertruck has faced a bumpy road. Despite Musk’s claims of massive demand over 1 million early reservations, only around 46,000 units have been delivered to date. The vehicle has already been subject to eight recalls in just over a year, adding to the growing skepticism.
The performance model did register a brief profitability spike in Q3 2024, which Troy Teslike, a respected retail analyst and Tesla tracker, attributes to Tesla delaying high-margin deliveries from previous quarters to boost quarterly results.
pic.twitter.com/ctGdVNsDoO — Troy Teslike (@TroyTeslike)
