When Tesla finally began deliveries of the Cybertruck in November 2023, fans and reservation holders were eager to get their hands on the long-awaited vehicle. However, the initial excitement quickly faded as early adopters were met with disappointing news regarding the revised specifications—most notably, the maximum range. Just weeks into ownership, these early Cybertruck enthusiasts were confronted with a series of troubling issues that made them reconsider their purchase.
The list of problems was extensive. Software glitches, non-functional differentials, and subpar charging performance were among the first red flags. As more Cybertrucks hit the road, additional issues began to surface, including failed rear drive unit inverters, rear steering motor failures, and significant build quality concerns—such as body parts falling off.
These issues, coupled with a significant production ramp-up at Tesla’s Giga Texas factory, led to an increase in Cybertruck supply, outpacing the demand. Initially, Tesla was willing to buy back Cybertrucks from dissatisfied owners with minimal depreciation penalties. But as the market became saturated, the company found it increasingly difficult to find buyers for new builds.
In early 2024, the resale value of the Cybertruck was double the list price, with eager buyers willing to pay a premium. Tesla’s decision to launch the high-margin Foundation Series Cybertruck initially seemed like a stroke of genius, boosting profits by $20,000 per unit. However, as production ramped up and more units became available, demand for the Foundation Series dwindled, causing a sharp decline in resale values.
Tesla’s strategy to address this oversupply has included opening order books in Mexico and Canada. However, with many reservation holders opting to wait for the cheaper, regular variants, Tesla is on the brink of discontinuing the Foundation Series altogether. When the more affordable versions hit the market at $20,000 less, the resale value of existing Cybertrucks will likely plummet even further.
Currently, hundreds of used Cybertrucks are listed for sale across the U.S., with prices hovering around $100,000. Yet, with new Foundation Series models readily available for immediate delivery, these inflated prices seem increasingly unjustifiable. The impending removal of the Foundation Series markup will likely trigger an additional $20,000 drop in resale value, leaving current owners with a steep depreciation curve.
Looking ahead, Tesla’s introduction of the $61,000 RWD variant next year is expected to apply even more pressure on used Cybertruck prices. For those patient enough to wait, the used Cybertruck market could become significantly more attractive in the near future, as sellers come to grips with the harsh realities of depreciation.
