Key Takeaways
- Tesla has delayed Cybertruck deliveries possibly related to accelerator pedal issues.
- Layoffs affecting over 10% of the company’s global workforce are also underway as it looks to reduce costs.
- Tesla faces challenges with declining sales, particularly against Chinese EV maker BYD.
Tesla is canceling Cybertruck delivery appointments for a number of buyers, citing an “unexpected delay,” according to Carbuzz. The site quoted a number of posts at the Cybertruck Owners Club forum on the topic. In some cases, at least, Tesla also appears to be offering no firm deadline for when deliveries will resume, for instance telling one forum poster that it will “reach out again when we’re able to get you back on the schedule.”
What is Tesla Autopilot and how does it work?
Tesla vehicles have some self-driving or autonomous capabilities through a feature bundle called Autopilot.
While Tesla hasn’t made any widescale announcements on the matter, the delays appear to be linked with accelerator pedal issues, as mentioned in one Cybertruck Owners Club thread spotted by Engadget. The latter additionally pointed to content on TikTok which suggests that excess lubricant on the pedal can cause its cover to loosen, slide, and then jam into a gap in the truck’s floor, leaving the accelerator stuck on — something extremely dangerous with any vehicle, never mind something as powerful as the Cybertruck. Tesla has reportedly told some people that deliveries will resume on April 20, but it’s not clear if that date will apply to everyone still waiting on an order. Assuming no further obstacles, production is still likely to ramp up over the course of 2024, eventually closing the gap on the list of preorders.
Tesla begins layoffs
The news comes alongside reports from Reuters and others, however, that the company has begun laying off over 10% of its global workforce, which in December 2023 included over 140,000 people. A memo from CEO Elon Musk states that to “prepare the company for our next phase of growth,” Tesla has had to “look at every aspect of the company for cost reductions and increasing productivity.”
Senior Vice President Drew Baglino, in charge of battery tech, and Rohan Patel, vice president for public policy and business development, both announced their own departures on Monday. The company’s current headquarters is located in Austin, Texas, having been switched there from California. That’s also where the first Cybertrucks were delivered.
Tesla will reveal a robotaxi on August 8, says Elon Musk
Musk made the announcement hours after Reuters publish a report claiming Tesla had cancelled development on its $25,000 EV.
To grow its lineup, Tesla is believed to be working on a lower-cost “Model 2” car and/or a robotaxi, the latter of which should be announced on August 8. In the interim however the company has been coping not just with Cybertruck launch issues, but declining sales overall, which in the March quarter were down 8% year-over-year.
One of the reasons is China’s BYD, which recently eclipsed Tesla as the world’s leading EV maker. Although BYD doesn’t have a presence in major markets like North America, it has done well in its home country, competing directly with Tesla on price. That’s one of the key incentives to release a Model 2, since even the Model 3 starts at $35,990 in the US. That’s affordable next to some EVs, but is still costly compared to gas cars like Kia Soul or Honda Civic, which are far more popular on North American roads as a result.
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