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 rendering of Tesla's upcoming compact SUV on a Chinese factory line with Elon Musk approving the design.
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Tesla developing compact affordable SUV amid strategy shift and sales slump, Reuters reports

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Tesla is developing a new compact electric SUV priced below the $36,990 Model 3 and measuring 168 inches (4.3 meters) long—shorter than the Model 3 (185.8 inches) and Model Y (188.7 inches)—according to Reuters citing four anonymous supplier sources. The all-new design awaits CEO Elon Musk's production approval and may launch first in China before expanding to U.S. and German factories, signaling a pivot back to core vehicles after a focus on robotaxis and humanoid robots.

Tesla has increased lease prices for its Cybertruck Premium AWD model in the United States by 10%. The Cyberbeast trim's pricing remains unchanged. Deliveries for the Premium AWD are estimated in 2-3 months.

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Tesla revised its Full Self-Driving transfer policy for the new All-Wheel-Drive Cybertruck trim priced at $59,000. The change has prompted some customers to cancel their orders. Deliveries of the model are scheduled to begin soon.

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