All pre-orders will be refunded.
In what must be the most shocking news story of the year, Tesla CEO Elon Musk has confirmed production of the long-awaited Cybertruck has been canceled. The reason? Ongoing development costs have far exceeded the original budget. The controversial-looking EV truck is no longer a viable business case. "Very sad to say we've made the tough decision to cancel our Cybertruck," Musk wrote. "I know there will be plenty of disappointed customers and all pre-orders will be promptly refunded. The decision was made in the best interest of Tesla and its future."
Despite lacking a PR department, inside sources at the California-based automaker are quietly saying Musk studied the numbers and ultimately determined that the currently under construction Gigafactory in Austin, Texas will be better suited for only Model Y and Model 3 production.
Originally, Austin was tasked with building both the Cybertruck and Model Y, but demand for the Model 3 continues to rapidly increase. Furthermore, the Cybertruck's delayed launch and behind-the-scenes issues would have resulted in a much higher price tag than initially announced.
When the Cybertruck concept debuted back in 2019, Musk promised a base price starting at $39,900 for the rear-wheel-drive model. The all-wheel drive version would begin at exactly $10k more. Material costs, in general throughout the auto industry, have increased over the past couple of years since the onset of the coronavirus pandemic. The ongoing war in Ukraine is not helping matters.
Tesla very recently increased the Model Y's price tag (the cheapest Long Range begins at $62,990 - a $20k increase over the Standard Range) and now needs to redirect the Cybertruck's development budget to avoid additional price hikes for its bread and butter vehicles.
Another reality we think might have factored into Tesla's decision is that legacy OEMs like Ford and GM have beaten it to the EV truck market. The F-150 Lightning's downright affordable starting price is something Tesla can no longer match. Tesla is also anxious to enter the delivery business with vans, a market segment analysts predict will explode by the decade's end. A Tesla source later admitted that this entire article is utter nonsense.