Analysis of the Impact of Sluggish Tesla Cybertruck Sales on Overall Business

Based on collected data and analysis, we now present a comprehensive report for you.

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According to data released by Cox Automotive, Tesla Cybertruck’s 2025 U.S. market sales performance fell far short of expectations:

Metric	Value	YoY Change
2025 Total U.S. Sales	20,237 units	~50% YoY Decline
2025 Q4 Sales	~5,100 units	68% YoY Decline
2025 Q3 Sales	5,400 units	Continuous Sequential Decline
Annual Sales Target Set by Elon Musk	250,000 units	Actual Completion Rate of Only 8%

This sales performance stands in stark contrast to the over 1 million pre-orders received when the vehicle was unveiled in 2019, indicating a huge gap between actual market demand and expectations. [1][2]

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Cybertruck’s underperformance failed to help Tesla reverse its global sales decline trend:

Year	Global Deliveries	YoY Change
2023	1.81 million units	+38%
2024	1.79 million units	-1.1%
2025	1.64 million units	-9%

This marks the first time Tesla has seen consecutive annual sales declines. [3][4]

In 2025, BYD’s pure electric vehicle sales grew nearly 28% year-over-year to

, overtaking Tesla (1.64 million units) in annual sales for the first time to become the world’s largest electric vehicle seller. [4][5]

Cybertruck is currently only sold in the following countries/regions:

• North America: U.S., Mexico, Canada
• Asia: South Korea
• Middle East: United Arab Emirates, Saudi Arabia, Qatar

, mainly due to its stainless steel body and sharp-edged design failing to meet safety regulations and consumer preferences in these regions. [2]

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Tesla’s quarterly profitability data for 2025 shows significant pressure:

Quarter	Operating Profit Margin	Automotive Gross Margin (Excluding Credits)
2024 Q1	6.3%	18.5%
2024 Q2	10.8%	25.9%
2024 Q3	6.2%	17.1%
2024 Q4	2.1%	6.3%
2025 Q1	4.1%	15.4%
2025 Q2	5.6%	16.5%
2025 Q3	4.1%	15.4%

. [6]

According to Tesla’s 2025 Q3 earnings report and earnings call, factors impacting profit margins include:

1. Decline in regulatory credit income
   : Sequential decline for multiple consecutive quarters
2. Increase in operating expenses
   : AI and R&D projects drove a 56% year-over-year increase in R&D spending
3. Reduced fixed cost absorption
   : Falling sales led to an increase in unit fixed costs
4. Model price cut pressure
   : Low-priced versions launched to boost Model 3/Y demand pressured profit margins
5. Tariff impact
   : Q3 tariff costs exceeded $400 million, with the energy and automotive businesses each bearing approximately half

Although Tesla did not disclose separate financial data for Cybertruck, its impact on profit margins can be inferred to mainly lie in:

• Insufficient capacity utilization
  : Low capacity utilization of the Cybertruck-specific production line at the Texas Gigafactory
• R&D cost amortization
  : High Cybertruck R&D costs cannot be effectively allocated due to low sales volume
• Supply chain costs
  : The unique stainless steel body material has high costs, and production volume does not achieve economies of scale

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Despite facing sales and margin pressure, Tesla’s financial fundamentals remain resilient:

Financial Metric	Value	Assessment
Total Cash and Investments	$41 billion	Sufficient cash reserves
Operating Cash Flow in the Past Four Quarters	$15.8 billion	Healthy cash flow generation capability
Current Ratio	2.07	Strong short-term solvency
Free Cash Flow (2025 Q3)	$4 billion	Record level

Tesla’s financial buffer capacity gives it room to address potential cost pressures related to Cybertruck while continuing to invest in new businesses such as AI, energy storage, and robotics. [6]

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Analysts show clear divergence in their attitudes toward Tesla’s stock:

Rating	Number of Analysts	Percentage
Strong Buy	14	37.5%
Hold	17	45.9%
Strong Sell	10	16.6%

• Average Target Price
  : $358.3 (19% downside from current stock price)
• Most Optimistic Target Price
  : $600 (36.6% upside potential)

Analysts expect Tesla to face a profit decline in FY2025, but forecast a 67.24% profit growth rate in FY2026. [7]

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1. Sluggish Cybertruck sales
   have a
   limited but negative
   impact on Tesla’s overall sales growth, as it accounts for only about 1.2% of Tesla’s total deliveries (20,237 units vs. 1.64 million units)

2. Margin pressure
   mainly stems from:
   • Reduced fixed cost allocation due to overall sales decline
   • Price promotion strategies for Model 3/Y
   • Increased R&D and AI investment
   • External cost pressures such as tariffs

3. Long-term impact
   depends on:
   • Whether Tesla can offset the slowdown in its automotive business through new businesses such as FSD, Robotaxi, and Optimus
   • Whether Cybertruck can enter more international markets
   • Changes in the competitive landscape of the overall electric vehicle market

• Pay attention to the FY2025 Q4 earnings report to be released on January 28, 2026
• Monitor progress of new products such as Cybercab and Optimus
• Track regulatory approval and deployment progress of FSD autonomous driving technology
• Watch whether growth in the energy storage business can offset the slowdown in the automotive business

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[1] Business Insider - “Tesla’s Cybertruck is falling far short of Elon Musk’s ambitious sales targets” (https://www.businessinsider.com/cybertruck-sales-decline-tesla-elon-musk-cox-automotive-data-2026-1)

[2] Yahoo Finance - “As Cybertruck Sales Fall Flat, Should You Buy, Sell, or Hold Tesla Stock?” (https://finance.yahoo.com/news/cybertruck-sales-fall-flat-buy-190101829.html)

[3] CarPro - “Tesla Loses Global EV Crown In 2025” (https://www.carpro.com/blog/tesla-loses-global-ev-crown-in-2025)

[4] BBC - “China’s BYD overtakes Tesla as world’s top EV seller” (https://www.bbc.com/news/articles/cj9rjwpvmpzo)

[5] Tesla SEC Filing 10-Q (Q3 FY2025) (https://www.sec.gov/Archives/edgar/data/1318605/000162828025045968/tsla-20250930.htm)

[6] Tesla Q3 2025 Earnings Call Transcript

[7] Tesla Company Overview Data (Jinling API)