Main points
- Tesla has delayed Cybertruck deliveries, possibly related to accelerator pedal issues.
- In order to reduce costs, the company is also conducting layoffs, affecting more than 10% of its global employees.
- Tesla faces the challenge of declining sales, especially from Chinese electric car maker BYD.
Carbuzz said Tesla canceled Cybertruck delivery appointments for some buyers, citing “unexpected delays.” The website cites some posts on the topic on the Cybertruck Owners Club forum. Tesla also doesn’t appear to be providing a firm deadline for resuming deliveries in at least some cases, telling one forum poster that it “will contact you again when we are able to get you back on schedule.”
What is Tesla Autopilot and how does it work?
Tesla vehicles have some self-driving or autonomous features through a feature package called Autopilot.
While Tesla has yet to make any large-scale announcements on the matter, the delay appears to be related to accelerator pedal issues, as mentioned in a Cybertruck Owners Club post spotted by Engadget. The latter also pointed to content on TikTok suggesting that too much lubricant on the pedals could cause the pedal caps to loosen, slip, and then become lodged in gaps in the truck floor, causing the accelerator to become stuck — an extremely serious problem for any vehicle. Dangerous, never mind something as powerful as the Cybertruck. Tesla has reportedly told some people that deliveries will resume on April 20, but it’s unclear whether that date will apply to everyone still waiting for an order. Assuming there are no further obstacles, it is still possible that production will increase during 2024, eventually closing the gap on the pre-order list.
Tesla begins layoffs
However, the news is consistent with reports from Reuters and others that the company has begun laying off more than 10% of its global workforce, with more than 140,000 jobs lost by December 2023. CEO Elon Musk noted in a memo that in order to “prepare the company for the next phase of growth,” Tesla must “consider all aspects of the company to lower costs and improve productivity”.
Drew Baglino, senior vice president of battery technology, and Rohan Patel, vice president of public policy and business development, both announced their departures on Monday. The company’s current headquarters moved from California to Austin, Texas. This is also where the first batch of Cybertrucks will be delivered.
Elon Musk says Tesla will launch robotaxis on August 8
Musk’s announcement came hours after Reuters published a report that Tesla had canceled development of its $25,000 electric car.
To expand its product lineup, Tesla is believed to be developing a lower-cost “Model 2” car and/or self-driving taxis, the latter of which should be released on August 8. However, during this period, the company not only had to deal with a problematic Cybertruck launch, but overall sales fell, down 8% year over year in the March quarter.
One reason is China’s BYD, which recently overtook Tesla to become the world’s leading electric car maker. Although BYD doesn’t have a strong presence in major markets like North America, it does well at home, competing directly with Tesla on price. This was one of the main motivations for releasing the Model 2, as even the Model 3 starts at $35,990 in the United States. That’s cheaper than some electric cars, but still expensive compared to gas-powered cars like the Kia Soul or Honda Civic, making those cars more popular on North American roads.