Tesla shares slide as Cybertruck flop adds to 50,000 unsold EVs

Tesla shares fell after the Cybertruck was labeled the biggest flop in automotive history, adding to concerns about a record 50,000 unsold vehicles across the company's lineup.

Industry data from automotive registration figures shows SpaceX, led by Tesla Chief Executive Officer Elon Musk, purchased 18% of all US Cybertrucks sold in the fourth quarter of 2025. The figure highlights how dependent Cybertruck sales have been on Musk's corporate ecosystem rather than broad consumer demand. Tesla's overall unsold inventory reached 50,000 vehicles, a record for the company, according to industry data.

The Cybertruck, unveiled in 2019 with much fanfare, has struggled since its launch in late 2023. Production challenges, including difficulties with the vehicle's unique stainless-steel exoskeleton manufacturing process, have resulted in output falling well short of the 250,000 annual production capacity Tesla had targeted. Consumer demand has also been weaker than anticipated, with the polarizing design and a starting price above $60,000 — far higher than the $39,900 Musk initially promised — deterring many potential buyers.

The flop label compounds broader concerns about Tesla's growth trajectory. The company's global vehicle deliveries have faced headwinds from intensifying competition, particularly from Chinese EV makers such as BYD, which surpassed Tesla in quarterly EV sales in late 2024 and has continued to gain market share with more affordable models. In the US pickup segment, the Ford F-150 Lightning and Rivian R1T have provided alternatives for electric truck buyers, while traditional automakers have ramped up their EV offerings.

Tesla's stock has been under pressure as investors reassess the company's valuation, which has long priced in expectations of dominant market share and industry-leading margins. The Cybertruck's struggles raise questions about Tesla's ability to replicate the success of its earlier models and whether the company's product development pipeline can deliver another mass-market hit. Tesla shares have declined significantly from their 2021 peak, as the narrative around the company has shifted from growth story to mature automaker facing margin compression.

The broader equity market has also shown signs of rotation away from high-growth names, with the S&P 500's technology sector facing headwinds from elevated interest rates. The US 10-year Treasury yield has remained above 4%, pressuring growth stocks with stretched valuations. Tesla, which trades at a premium to traditional automakers, is particularly sensitive to shifts in the rate environment. The Cboe Volatility Index, or VIX, has remained elevated, reflecting uncertainty about the economic outlook and corporate earnings.

Investors are now watching for Tesla's next quarterly delivery and production report, expected in early October, for signs of whether demand is stabilizing across the broader lineup. The company is also expected to provide updates on its next-generation vehicle platform, which Musk has said will be a lower-cost model aimed at reigniting growth. Until then, the Cybertruck's failure as a product will continue to weigh on investor confidence in Tesla's ability to execute on ambitious vehicle programs.

This article is for informational purposes only and does not constitute investment advice.