Investing.com -- Global Equities Research analyst Trip Chowdhry has highlighted potential demand issues for Tesla (NASDAQ:TSLA)'s Cybertruck after the company initiated discounts on new models in its inventory. The price reductions extend up to $1,600 on new vehicles, depending on the model's configuration, and as much as $2,600 for demonstration versions.
There have been reports of a slowdown in the production of the distinctive steel pickups at Tesla's factory in Austin, Texas in recent weeks. The Cybertruck, recognized for its unconventional design, first began deliveries in 2023. The vehicle was initially launched in 2019 with a projected price tag of around $40,000. However, the base price in the US escalated to nearly $80,000 throughout 2024.
Chowdhry suggested that the issue of Cybertruck demand is solvable. He proposed a two-fold solution: firstly, the overall size of the Cybertruck needs to be reduced by 20%. Secondly, the price of all versions of the Cybertruck should be between $40,000 and $60,000, which aligns with the prices announced when the vehicle was first revealed.
He expressed skepticism about the recently announced Cybertruck incentives, stating they will not spur demand for the vehicle. Chowdhry also noted that, based on anecdotal comments from vehicle insurers in California, Rivian (NASDAQ:RIVN) appears to be gaining popularity in comparison to the Cybertruck.
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