Topline
Tesla shares up 2.1% pre-market trading Monday after Cybertruck chief Siddhant Awasthi announced his departure, coming just days after shareholders approved Elon Musk’s record $1 trillion compensation package.
Tesla co-founder and CEO Elon Musk gestures while introducing the newly unveiled all-electric battery-powered Tesla Cybertruck at Tesla Design Center in Hawthorne, California on November 21, 2019. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)
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Key Facts
Tesla opened up 2.35% Monday and climbed to 4.1% by 11:30 am after Cybertruck chief Siddhant Awasthi announced Sunday on X that he’s leaving the company.
Critics have slammed the Cybertruck as one of the auto industry’s biggest misfires, citing eight recalls in its first 13 months, poor build quality and a polarizing appearance.
Tesla sold 5,385 Cybertrucks in the third quarter, down 62.6% from 14,416 a year earlier, according to Cox Automotive.
Year to date, sales have dropped 38% to 16,097 vehicles from 25,974 a year ago, per the report.
The 6,600-pound truck sold fewer than 40,000 units in 2024, 84% less than Musk’s 250,000-unit goals.
Key Background
When Musk unveiled the Cybertruck in 2019, he promised a revolutionary pickup that would upend the auto industry. Instead, the truck has become emblematic of Tesla’s growing troubles. The stainless-steel construction, intended to cut costs by eliminating the need for a costly paint shop, proved both expensive and difficult to manufacture, leading to production delays and recurring panel defects, according to a person familiar with the development process who who spoke to Forbes. Industry analyst Glen Mercer estimates Tesla spent around $900 million developing the truck. At over 6,600 pounds the Cybertruck has found little traction outside the U.S., where its bulk and pedestrian-safety standards limit sales.