Tesla Faces Crisis as 10,000 Cybertrucks Remain Unsold, Sales Plummet Globally

Tesla, once a leader in the electric vehicle (EV) industry, is grappling with a severe challenge as over 10,000 Cybertrucks sit unsold across the U.S., costing the company an estimated $800 million. According to a recent Forbes report, this inventory backlog, combined with sharp declines in Tesla sales worldwide, signals a potential turning point for the brand amid rising competition and shifting market dynamics.

Cybertruck Inventory Piles Up, Threatening Tesla’s Finances

The Cybertruck, launched with high expectations, was projected to reach an annual production of 250,000 units. However, the reality has fallen far short. As of May 17, 2025, Tesla’s stockpile of 10,000 unsold Cybertrucks represents a financial burden of approximately $800 million. This figure is based on past sales performance, with the report noting that the inventory could last at least three months if production halts immediately. The Cybertruck’s struggles are compounded by a broader decline in Tesla’s sales, raising questions about the company’s ability to adapt in a rapidly evolving EV market.

Global Sales Drop Signals Competitive Pressure

Tesla’s sales figures paint a grim picture across key markets. In the Netherlands, sales have dropped 75% compared to April 2024, while the U.K. reports a 62% decline over the same period. Germany has seen Tesla lose market share to competitors like BYD and VW, with additional setbacks in the U.K., where a privately imported Cybertruck was impounded by British police. The report highlights that the Cybertruck has been “banned in the country for its excessive size, weight and sharp, potentially dangerous metal edges,” which exceed regulatory standards for road safety. In China, a critical market for Tesla, sales are down 6% year-over-year, further eroding the company’s global standing.

Competing Models Outshine Tesla’s Offerings

The rise of competitors like the XPeng G6 is adding pressure on Tesla’s lineup, particularly the Model Y. In Australia, the Electric Viking YouTube channel reported that site owner Sam Evans canceled his Tesla Model Y order in favor of the XPeng G6. The G6, priced at AUD$59,800—equivalent to about $40,000 USD—matches the Model Y standard version’s cost but offers superior quality and luxury. In contrast, Tesla’s long-range Model Y costs around $10,000 more. The report notes that “XPeng and other EV makers bought a Tesla Model Y several years ago, dismantled it, and then made their own EV a bit better in terms of quality, luxury and price.” This trend of competitors leveraging Tesla’s designs to create more cost-effective alternatives is a growing threat to Tesla’s market dominance.

Industry Shifts and Regulatory Hurdles

Tesla’s challenges are not limited to competition. Regulatory hurdles, like the U.K.’s ban on the Cybertruck due to its 6,834-pound weight and angular design, highlight the difficulties of scaling unconventional vehicles in global markets. Additionally, the report mentions hundreds of Model Y units gathering dust after the Launch Edition failed to sell as expected, reflecting broader consumer hesitancy. Analysts cited in the report suggest that Tesla’s new Model 3 and Y may struggle against the EV onslaught from Chinese and Korean manufacturers, such as the Kia EV3, which undercuts the Model 3 by about $5,000 in markets like the U.K.

Can Tesla Recover Amid Mounting Challenges?

With unsold inventory, declining sales, and fierce competition, Tesla’s position in the EV industry is under threat. The company’s reliance on the Cybertruck as a flagship product has backfired, and its inability to match competitors on price and quality is evident. As the EV market evolves, Tesla must address these operational and economic challenges to regain its footing. The question remains whether Tesla can innovate quickly enough to compete with rising players like XPeng and Kia, or if its struggles will continue to reshape the EV landscape.