How Elon Musk Is Using His Other Companies To Mask Cybertruck's Weak Demand

Sales of Tesla Inc.’s Cybertruck person been propped up successful caller months by Elon Musk’s different companies, an different statement that further indicates nan polarizing pickup is failing to entreaty to mundane buyers.

SpaceX, nan Musk-led rocket and outer maker, accounted for 1,279 — aliases much than 18% — of nan 7,071 Cybertrucks registered successful nan US during nan 4th quarter, according to registration information that S&P Global Mobility provided to Bloomberg News. The billionaire’s different ventures acquired different 60 vehicles during those months.

That intends almost 1 successful each 5 Cybertrucks registered during nan play were delivered from 1 portion of Musk’s sprawling business empire to another. And nan purchases, apt exceeding $100 cardinal successful value, person continued into this year.

The figures reenforce nan grade to which user request is faltering only 2 years aft Tesla began delivering nan electrical pickup. Without those income to different Musk-run companies — which included xAI, Boring Co. and Neuralink, successful summation to SpaceX — Cybertruck registrations successful nan 4th fourth would person fallen 51%.

“Tesla is moving retired of buyers for nan Cybertruck,” said Sam Fiorani, vice president of world conveyance forecasting for advisory patient AutoForecast Solutions.

Tesla, Musk, SpaceX, Boring and Neuralink didn’t respond to requests for comment. SpaceX acquired xAI successful February.

Tesla is nether expanding unit to reverse slumping income crossed its lineup arsenic it faces nan imaginable of a 3rd consecutive yearly decline. Once nan undisputed electrical conveyance leader, nan institution was surpassed by China’s BYD Co. arsenic nan world’s apical seller of EVs past year.

Investors person mostly overlooked Tesla’s declining car income arsenic Musk reorients nan institution astir futuristic pursuits including robotaxis and humanoid robots. But those products are still a ways disconnected from becoming tangible business lines, and shareholders’ patience appears to beryllium wearing thin. Since hitting a grounds precocious successful mid-December, Tesla’s banal has mislaid a 5th of its value.

High Hopes

The Cybertruck debuted pinch awesome fanfare successful precocious 2023, diversifying Tesla’s lineup arsenic a rugged bruiser of a conveyance to antagonistic nan sleek Model Y SUV and Model 3 sedan that relationship for nan immense mostly of nan company’s car sales. Tesla was keen to compete successful nan lucrative US pickup marketplace dominated by Ford Motor Co., General Motors Co. and Stellantis NV.

Musk predicted earlier nan motorboat that nan institution would beryllium churning retired 250,000 Cybertrucks annually by 2025. He’s called it nan champion merchandise Tesla has ever made.

From nan outset, however, location were reddish flags. The Cybertruck’s angular creation was divisive, and nan attention-grabbing conveyance occasionally became nan target of ridicule and vandalism erstwhile a backlash against Musk swelled past year. The motortruck was besides much costly than expected, pinch first versions fetching much than $100,000, acold much than nan under-$40,000 starting value tag first touted successful 2019.

The first Cybertruck registrations by SpaceX began successful October of past year, according to S&P Global Mobility data. The income to Musk-run companies person continued into 2026, pinch different 158 successful January and 67 successful February.

While nan financial position of nan inter-company income haven’t been disclosed, nan Cybertruck’s existent starting value of astir $70,000 suggests that SpaceX, xAI, Boring and Neuralink person paid Tesla much than $100 cardinal mixed for nan vehicles.

It’s not wholly clear what Musk’s different companies are doing pinch nan Cybertrucks, aliases why an artificial intelligence and societal media institution would get 50 of them.

Photos and videos person circulated online showing agelong rows of idle Cybertrucks connected SpaceX spot successful Texas. The lead technologist for nan pickup posted connected societal media successful October that SpaceX was replacing gas-powered support vehicles pinch trucks. At slightest immoderate are being utilized arsenic information vehicles. EV news outlet Electrek reported successful December that SpaceX could yet bargain astir 2,000 Cybertrucks.

While Tesla has fixed nary denotation that it would discontinue nan Cybertruck, it’s phasing retired nan slow-selling Model X SUV and Model S sedan, its 2 oldest vehicles. Musk has indicated nan institution whitethorn look to boost fleet income to commercialized customers successful consequence to questions astir Cybertruck’s murky prospects.

“There’s evidently a marketplace location for cargo delivery,” he said successful January during a Tesla net call. “There’s a batch of cargo that needs to move locally wrong a city, and an autonomous Cybertruck could beryllium very useful for that.”

Pickup Letdown

The income woes aren’t wholly unsocial to Cybertruck: electrical pickups person been a bust wrong nan broadly stalled US EV market.

Ford precocious decided to person its electrical F-150 Lightning pickup to an extended-range hybrid vehicle. The Cybertruck was still nan top-selling battery-powered motortruck successful nan US during nan first quarter, contempt a 45% drop, according to Cox Automotive data.

Musk’s companies person agelong been intertwined done financial investments, business agreements and sometimes moreover shared personnel. XAI uses Tesla Megapack batteries and has integrated its Grok chatbot into Tesla vehicles; Las Vegas conference-goers tin thrust successful Teslas done a Boring-built tunnel; Tesla and SpaceX are collaborating connected a planned spot accumulation project.

Still, it’s different for an automaker to unload important volumes of a azygous exemplary to an affiliated business pinch nan aforesaid CEO. Car manufacturers will sometimes connection caller incentives, little prices aliases lease vehicles to labor erstwhile a exemplary isn’t trading well.

“It’s a measurement of keeping nan works moving erstwhile unit request does not adjacent production,” said Tom Libby, an automotive expert astatine S&P Global Mobility.

Hull writes for Bloomberg.