Tesla’s having a rough year—maybe its roughest yet.
Once the crown jewel of the electric vehicle industry and the company that helped Elon Musk become the world’s richest man, Tesla is now facing serious headwinds. From plunging profits to a stockpile of unsold Cybertrucks, the brand’s shine is wearing off fast.
Tesla’s Losing Streak
Since Elon Musk stepped into a high-profile government role as the head of the Department of Government Efficiency (DOGE), he’s been preoccupied with cutting $2 trillion from the federal budget. But that shift in focus may be costing Tesla dearly.
The company has seen a sharp dip in its market value. Protests, public backlash, and mounting vandalism at Tesla facilities have raised red flags with investors—some even calling for Musk to step down as CEO.
Revenue from EV sales dropped 20% last quarter, and year-over-year net profits are down a staggering 71%. That’s not a typo—71%.
A Pile of Cybertrucks No One Wants
To make matters worse, Tesla has confirmed it’s sitting on a growing inventory of over 10,000 unsold Cybertrucks—worth an eye-popping $800 million.
Despite Musk’s lofty goal of selling 250,000 Cybertrucks annually, Tesla only moved about 6,400 units in Q1 of 2025. That’s a far cry from the launch-day hype.
Many analysts say the truck’s unconventional design and steep price are turning off potential buyers. And now, with Tesla’s brand becoming more politically polarizing—thanks to Musk’s ties to the White House and former President Trump—some customers are steering clear altogether.
Deep Discounts, But Still No Traction
Last month, Musk tried to jumpstart Cybertruck sales by slashing prices—dropping up to $10,000 off. He also rolled out a lower-priced rear-wheel drive version starting at $69,990, but it didn’t make much of a dent.
Why? Because this cheaper model came stripped of fan-favorite features like adaptive suspension, rear lightbar, and onboard power outlets. In short, it feels like a downgrade—especially for buyers already on the fence.
Production Problems and Recalls
On top of slow sales, Tesla’s also grappling with product recalls—from sticky pedals to faulty doors—further damaging consumer trust.
According to a Business Insider report, the company is quietly slowing down Cybertruck production and shifting workers to the more reliable and profitable Model Y line.
A Brand at a Crossroads
Tesla built its reputation on being bold and unconventional. From viral YouTube stunts to futuristic vehicle reveals, the company leaned heavily into hype.
But today’s buyers want more than flash. They want practicality, safety, and everyday usability—something the Cybertruck may be struggling to deliver.
Bottom line: Tesla isn’t just facing a sales slump—it’s in the middle of a brand crisis. And with $800 million in unsold trucks gathering dust, it’s clear that even steep discounts and viral reveals aren’t enough to pull the company out of this skid.
