Cybertruck price cuts amid recalls, tax credit loss, and unmet targets

Tesla's February 20, 2026, limited-time launch of a $59,990 base AWD Cybertruck—$20,000 below prior entry—and $99,990 Cyberbeast reflects deepening efforts to spur demand, following 2025 recalls, the end of federal EV incentives, and persistent sales shortfalls.

As detailed in prior coverage, Tesla introduced a base dual-motor AWD Cybertruck at $59,990 on February 20, replacing a discontinued RWD model and featuring adaptive damping, powered tonneau cover, bed outlets, and steer-by-wire—but lacking premium air suspension and other upscale options. CEO Elon Musk noted availability 'only for the next 10 days, depending on demand.' The Cyberbeast trim also dropped $15,000 after unbundling features like Full Self-Driving.

These moves address stagnant sales of around 5,000 units quarterly—well below the 250,000 annual goal—and a 2025 total of roughly 20,000 deliveries (48% YoY decline), exacerbated by rising Giga Texas inventory, production issues, and recent hardware recalls. Tesla's brand reputation dipped in key 2025 markets, compounded by the September discontinuation of the $7,500 federal EV tax credit and shifting consumer tastes away from high-priced electric pickups.

Even at $59,990, the entry price exceeds Elon Musk's 2019 unveiling promise of under $40,000, underscoring hurdles in the competitive EV truck segment where Tesla aims to rebuild momentum through affordability. Deliveries of the new variant begin in June 2026.

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Photorealistic illustration of discounted Tesla Cybertruck in showroom with sales stats and demand queue for news article.
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Tesla launches limited-time $59,990 AWD Cybertruck amid slumping sales and surging demand

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Tesla introduced a Dual Motor All-Wheel Drive base Cybertruck at $59,990—a $20,000 cut from the $79,240 premium AWD trim—available only until February 28, 2026, alongside a Cyberbeast reduction to $99,240. Amid 2025 sales of 20,237 units (down 48% YoY), strong demand has pushed U.S. deliveries to April 2027, as CEO Elon Musk noted future pricing will depend on this period.

Tesla has increased the price of its entry-level Cybertruck Dual Motor All-Wheel Drive from $59,990 to $69,990 effective March 1, 2026—just 10 days after launch—following CEO Elon Musk's announcement of temporary pricing amid strong demand pushing deliveries to 2027. The company also discontinued the lease option for this trim, further distancing current prices from 2019 promises.

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Tesla has updated its website to show delivery estimates of 2027 for new orders of the Dual Motor all-wheel drive Cybertruck variant, priced at $59,990. This follows the variant's launch last week and indicates strong demand, with production slots sold out through the end of 2026. The company plans to increase the price after February 28.

Elon Musk's SpaceX has purchased more than 1,000 Cybertrucks from Tesla, according to a report citing a source familiar with the matter. The acquisition, potentially worth over $80 million, aims to support Tesla amid weak demand for the electric pickup. SpaceX may increase its fleet to around 2,000 vehicles over time.

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Building on its Q4 2025 earnings announcement to shift Fremont factory space from Model S and X production to Optimus robots, Tesla faces an upheld $243 million Autopilot liability verdict while cutting Cybertruck prices to spur demand. CEO Elon Musk outlined near-term autonomy goals, with Robotaxi service expanding unsupervised operations.

Tesla has added a new entry-level all-wheel-drive Model Y electric SUV to its US lineup at $41,990 with 294 miles of EPA-estimated range, expanding options to five trims. The update, amid declining sales, coincides with plans to discontinue Model S and Model X production in spring 2026 to prioritize Optimus robotics manufacturing.

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Tesla has reduced monthly lease payments for its Model 3, Model Y, and Cybertruck in the United States by up to 23 percent, effective immediately. The discounts aim to boost demand following the end of the federal EV tax credit. Prices will rise again on November 1.

 

 

 

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