Tesla unveils cheaper Cybertruck variant, cuts Cyberbeast price to drive demand


A Tesla Cyberbeast is on display at the Petersen Automotive Museum in Los Angeles, California, U.S. December 21, 2023. REUTERS/David Swanson

Feb 19 (Reuters) - ⁠Tesla unveiled a cheaper Cybertruck variant in the U.S. ⁠on Thursday and slashed the price of its most-expensive model, ‌Cyberbeast, as the electric-vehicle maker struggles to find buyers for its pickup trucks.

Tesla priced the new dual-motor all-wheel-drive model at $59,990, making it the company's "most affordable" Cybertruck ​yet, and lowered the Cyberbeast price to $99,990 ⁠from $114,990.

With the price cut, ⁠Tesla looks to be discontinuing its "Luxe Package" for the model that ⁠included ‌Supervised Full Self-Driving and free access to its Supercharger network.

Tesla had added the package to its lineup last August ⁠when it raised the price of the pickup ​truck.

Earlier this month, ‌Tesla introduced a new all-wheel-drive variant of its bestselling Model ⁠Y SUV, ​priced at $41,990, sitting above the cheaper rear-wheel-drive "Standard" version.

DEMAND SLUMP

Price cuts have become a key part of Tesla's 2026 strategy, lowering entry prices to ⁠attract more cost-conscious buyers without waiting for ​a new mass-market vehicle.

The broader EV market has slowed since September, when the Trump administration ended the $7,500 federal tax credits. Tesla is ⁠also facing intensifying global competition.

Analysts have warned that a greater share of lower-priced vehicles could keep pressure on margins unless Tesla can offset the impact through reduced manufacturing costs or stronger revenue ​from software and services.

Tesla CEO Elon Musk ⁠said last month that the company would end production of its Model ​X SUV and Model S sedans ‌and instead use the space in ​its California factory to make humanoid robots.

(Reporting by Akanksha Khushi in Bengaluru; Editing by Janane Venkatraman and Subhranshu Sahu)

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